Intangible Assets Research Articles

EKONOMI KREATIF SEBAGAI LOKOMOTIF BARU PEREKONOMIAN INDONESIA MENUJU INDONESIA YANG MAJU

In recent years, attention towards the creative economy has increased on a global scale. This concept refers to an economy that is not only based on physical goods, but also involves the ownership of intangible assets, such as innovation and creativity. This article aims to explain how the creative economy can become a major driver in Indonesia's economy, potentially leading the country towards a more advanced future. The discussion includes a paradigm shift from an economy focused on physical production to one that emphasizes innovation, as well as a transformation from a recorded economy to a creativity-based economy. Furthermore, the article reveals how the creative economy can help Indonesia develop more innovative industries and compete in the international market. The use of the creative economy is also expected to reduce poverty levels and create a brighter future for the national economy. Therefore, success in implementing policies and utilizing Indonesia's high creative potential will lead the country towards an innovative, competitive, and sustainable economy in the future.

Attributes Driving Intangible Asset Valuation

The inherent complexity and subjectivity of assessing assets such as intangible asset, posing challenges for standardized methodologies and accurate financial reporting, this complexity is compounded by the consideration of various valuation criteria, some of which are ill-suited for appraising intangible assets, this study is dedicated to assessing the key attributes that drive the valuation of intangible assets, aiming to construct a comprehensive framework for their valuation. Employing a mixed-methods approach, both quantitative and qualitative research designs were employed, utilizing survey questionnaires, semi-structured interviews, and focus group discussions. Purposive sampling was employed to select participants and the data analysis involved descriptive and thematic content analysis. The study's findings underscored the paramount economic attributes of intangible assets, highlighting the significance of economic life span and company’s value driver. Conversely, attributes categorized as company’s value distracters were identified as less important, with novelty exhibiting the highest mean value of 4.6. Additional attributes such as originality, legal protection, royalty of the asset, and life span right of protection also contributed significantly to the valuation process. Qualitative findings revealed that the market and income methods of valuation are predominant in intangible asset valuation practices. The study demonstrated that the choice of valuation method hinges on information availability, with attributes like economic life span and historic income influencing the value derivation process using income and market approaches. The study concludes by illustrating its findings through the development of a tangible intangible asset’s valuation framework, providing a structured guide for assessing and determining the worth of intangible assets in a more systematic and informed manner.

The Role of Local Cultural Heritage in Community Empowerment: The Case of Gentur Lantern in Jambudipa Village, Indonesia

ABSTRACT Ngalogat is a type of pesantren tradition in Indonesia that is increasingly recognized as a local cultural heritage. However, there have been limited studies on the local potentials and assets in Jambudipa Village. This paper aims to explore the transformation of the Ngalogat tradition into new commodities, specifically Gentur lantern crafts, as a contribution to heritage studies. The research utilized a phenomenological approach involving observation, in-depth interviews, and documentation. The results indicate that the preservation of Ngalogat as a Gentur lamp commodity is indirectly influenced by religious figures advising students (Santri) living in Jambudipa and promoting the iconic heritage to residents. This has led the local government to initiate One Village One Product program, involving locals in producing Gentur lamps. While the pesantren traditions were once viewed with suspicion during the Dutch colonial regime, the post-independence era has brought hope for preserving local cultural heritage as a national identity and a driver of national development. However, these potentials have not been fully realized as authentic crafts of the people. This study suggests that the government should assist local communities in nominating intangible cultural assets to the World Heritage Committee (WHC) to gain recognition and protection of local identity.

The impact of intellectual capital on local authorities performance in property tax reassessment: the mediating role of process innovation

PurposeThis study aims to investigate the factors influencing property tax reassessment performance in West Malaysia. It specifically examines intangible aspects, such as intellectual capital and process innovation among valuation officers. The primary concern in this study is the variability in how effectively local authorities carry out property tax reassessment, with a significant number of them not conducting revaluations regularly.Design/methodology/approachThe data was collected using self-administered and electronic questionnaires using a purposive sampling method. The 154 useable responses were further analysed using partial least squares structural equation modelling in SmartPLS 4.FindingsThe result shows that process innovation mediates the relationship between structural capital and property tax reassessment performance as well as the relationship between relational capital and property tax reassessment performance. This suggests that local authority systems and policies are indirectly related to reassessment practises by introducing new methods of reassessment in the form of administration and technology. The result shows that building good relationships with stakeholders and other institutions encourages staff to develop innovative ideas for their reassessment activities, thus enhance the performance of property tax reassessment.Practical implicationsThe study provides insightful information for local authorities managers and stakeholders in crafting a better policy for periodic property tax reassessment. The study suggests the need for new administration and technological innovation in developing effective property tax reassessment strategies through the integration of organisational structure and relationship building.Originality/valueThe study developed a new model for property tax reassessment performance that incorporates intangible assets with the introduction of process innovation as a mediator.

Depreciation and impairment of non-financial assets in higher education institutions: Analysis and evaluation

Subject. The article investigates the state of presentation of information on depreciation and impairment of non-financial assets by Russian universities, and prospects for its improvement. Objectives. The aim is to summarize and systematize the provisions of the current federal accounting standards for public finance, governing the depreciation and impairment of non-financial assets, study the practice of accounting policy formation by higher education institutions in relation to non-financial assets based on the specifics of these organizations’ activities. Methods. The study employs observation, comparison, generalization, and interpretation, the analysis of the content of federal accounting standards for public finance, accounting policies for depreciation and impairment of non-financial assets of 26 higher education institutions in Russia. Results. Most higher education institutions do not consider the procedure for calculating depreciation of the structural part of fixed assets. Some universities apply the procedure for calculating amortization of intangibles that does not comply with the provisions of the federal accounting standards for public finance in relation to intangible assets with indefinite useful life. No university identifies signs of impairment or reflects non-financial assets less impairment losses in accounting statements, thus preventing their objective evaluation. Conclusions. I offered a unified approach to identifying external and internal signs of possible impairment of assets by higher education institutions, given the specifics of their activities. The paper established a sequence of actions when testing a cash-generating asset for impairment.

R&D tax allowance and voluntary information disclosures

Purpose: This paper examines whether the R&D tax allowance in force in Poland since 2016 has increased the voluntary disclosure of information on innovation, R&D, and strategic plans in the management commentary of companies listed on the Warsaw Stock Exchange (WSE). Methodology/approach: First, the Tobit model was used to examine the determinants of recognising development works in a sample of 29,288 observations from 3,406 firms. Second, it uses logit and generalised least squares (GLS) methods to analyse 556 management commentaries from 97 public companies that benefited from the R&D tax allowance between 2016 and 2021. Findings: We show that tax relief increases the probability of recognising develop-ment work and disclosing information about patents to signal innovativeness and engagement in R&D. Indebted companies disclose more R&D information and strategic plans. IFRS and advanced management increase disclosures, as opposed to tax planning that uses tax havens or that is supported by more advisors. Companies audited by the Big 4 provide fewer details on R&D outcomes and strategic plans. Research limitations/implications: Extending the sample requires collecting disclosure data based on the wording in management commentaries using text-mining tools. Originality/value: The paper contributes to the literature by identifying that R&D tax allowance influences voluntary R&D information disclosure in management commentaries, especially by smaller companies in debt with larger intangible assets.

Pricing the missing intangible capital: Evidence from the China A‐share market

AbstractThis study develops novel proxies for firm‐level intangible capital in China's A‐share market and assesses its pricing implications. We compile intangible capital from relevant expenditure entries detailed in the notes of financial statements and assess them using perpetual inventory methods, accounting for industry‐specific variations. Our findings reveal a significant positive intangible capital premium. Additionally, the intangible capital factor substantially improves the performance of the Fama–French three‐ and five‐factor models, and other widely accepted pricing models. This research contributes to the broader understanding of modern production paradigms that increasingly rely on intangible assets and investigates their valuation implications in financial markets.

Особливості організації ІТ-компаній та основи здійснення обліку в Україні

The article deals with the development of the IT industry in Ukraine, its impact on the economy of the state and measures to stimulate investment through the IT sector. The basics of organizing the activities of IT companies and the accounting process in accordance with modern conditions are investigated. On the basis of the study, the author generalizes the distribution of IT companies according to the specifics of economic activity, and distinguishes two business models – product and service. Attention is also paid to the accounting policy of the company and the aspects that need to be considered when organizing the accounting of this type of enterprise, namely: recognition of fixed assets and intangible assets, determination of the cost of services. In addition, attention was paid to such an important issue as taxation. How exactly is taxation carried out, what benefits and tax relief are offered to businesses in this industry.

DOES INTELLECTUAL CAPITAL STRENGTHEN ENVIRONMENTAL DISCLOSURE ON FINANCIAL PERFORMANCE DURING COVID-19?

This research aims to examine the moderating role of Intellectual Capital (IC) on the influence of Environmental Disclosure (ED) on Financial Performance (FP) in the energy sector listed on the IDX for the period 2020 to 2022. The analysis uses Ordinary Least Square (OLS). The research results found that IC was able to moderate the relationship between ED and EP. This research contributes to the RBV theory regarding IC, an intangible asset in this case that can play a role in increasing ED and FP and encouraging the company's competitive advantage. Apart from that, this research also contributes to sustainability theory, which states that sustainability in companies requires the role of IC as a variable that can encourage ED to increase FP. Thus, IC becomes an important variable that companies must consider to increase FP while still paying attention to sustainability factors.

Research on Community Participation and Social Responsibility of Higher Vocational Colleges in the Inheritance of Intangible Cultural Heritage Rope Weaving

Higher vocational colleges are becoming more and more significant in the inheritance of intangible cultural assets as awareness of the need to safeguard them grows. Taking intangible cultural heritage rope weaving as an example, this paper discusses the community participation and social responsibility practice of higher vocational colleges in the inheritance of intangible cultural heritage rope weaving. Higher vocational colleges have successfully supported the inheritance and development of intangible cultural heritage rope weaving by establishing research centers, offering pertinent courses, and organizing cultural events in collaboration with the community, according to case analysis and hands-on investigation. These practices not only enhance the awareness and participation of community residents in the intangible cultural heritage rope weaving, but also promote the activeness of community culture and economic development. In order to help higher vocational colleges fulfill their social obligations and advance the sustainable development of intangible cultural heritage rope weaving, this paper makes some strategic recommendations for how they can improve education, increase community cooperation, use digital technology, and strengthen interdisciplinary research in the field of intangible cultural heritage rope weaving.

The Impact of Intangible Assets on Capital Structure in Asia

Past studies find evidence that the level of intangible assets is positively related to corporate borrowing in the United States. This paper explores the relationship between intangible assets and capital structure for Asian countries. We identify a positive relationship between intangible asset investment and debt levels throughout Asia. Unlike in the United States, this positive relationship appears to be significant for non-Goodwill and Goodwill intangible assets. Further, we find that the magnitude of this relationship is significantly greater for developed Asian countries than for developing ones. We explore explanations for this difference related to firm size, firm age, cash flow volatility, and a firm’s likelihood to default on its debt.

Research on the Synergy between Economic Returns and Safety Investments in Enterprises

Coal, as a key input factor to ensure China's economic growth, plays an important role in the orderly development of its industry. The safety guarantee of production link is the only way to ensure the stable development of the industry, so it is in urgent need of the investment of safety funds and effective implementation to protect it. As a high-risk industry, the coal industry has a poor working environment, difficult working conditions, backward safety technology, and endless hidden dangers. In the process of development, the coal industry blindly pursues benefits while ignoring safety investment, which is exactly a common problem in China's coal enterprises and also the deep cause of coal mine safety accidents. This paper uses relevant theories to analyze the effect of coal enterprises' safety investment on economic benefit and determine its equilibrium point of safety and economic benefit. From micro level of building model, neural network model for coal enterprise economic benefit is explained variable, safety input as explanatory variables, core number of coal production, labor, labor productivity, and fixed assets and intangible assets investment as a intervening variable, such as inspection cause nonlinear relationship between safety investment and economic benefit are intermediary variables, measure the influence of different variables on economic benefit enterprise security mechanism, which integrated the result of theoretical analysis and empirical research, puts forward coal enterprises safety investment economic efficiency maximization of promotion strategy.

Analysis of knowledge creation practices and organisational performance in sports organisations: a comparative study

ABSTRACT In today’s world, organisations that can improve and develop their intangible assets and knowledge will be successful in the face of changes and can ultimately improve their performance. Given that the effectiveness of knowledge creation is influenced by culture, independent studies in different cultures are necessary. Therefore, the present study was conducted to analyse knowledge-creation practices and organisational performance in sports federations in Iran and Poland. Two researcher-made questionnaires were used to collect data. Statistical tests including Mann – Whitney U and regression were used to the data analysis. The findings showed internalisation in Poland and socialisation in Iran are the main predictors of organisational performance in sports federations. So, the managers of sports federations in Poland and Iran should use different knowledge creation practices to improve organisational performance. In both countries, however, the conversion of knowledge into tacit knowledge guarantees the improvement of organisational performance.

The Role of Secure Property Rights in Driving Economic Growth: A Review of Recent Evidence

This paper aims to briefly explain the factors contributing to economic growth, particularly emerging and developing economies, emphasizing the impacts of secure property rights. Tangible and intangible assets such as land and minerals, patents and copyrights offer the investors legal recognition that enhances investment, inventive activities and efficient market exchange. The review demonstrates how property rights reforms have positively impacted agricultural yields, credit facilities, and FDI in sub-Saharan Africa, Southeast Asia and Latin American countries. The paper also focuses on the impact of intellectual property rights on technological advancement, especially in knowledge-based societies. While the previous shows that there are gains in reforms in property rights, it has to be stated that there are still hurdles in the implementation of property rights reforms for the benefit of the more significant population due to the following: ? Finally, the paper reiterates the importance of efficient and precise laws and policies that will enhance the efficiency of the property rights to enhance the economic returns.

Innovation and firm characteristics: evidence from India’s company-level data

PurposeThis paper tries to explain variation in company-level innovation activities based on certain firm-level characteristics in India between 2010 and 2020.Design/methodology/approachProbit and Heckman’s two-step estimation based on panel data consisting of annual consolidated financial statements of 8,529 companies.FindingsFirm-level innovation activities were associated with larger company size, lower age, higher access to digital assets and voluntary expenses on environmental sustainability and social responsibility.Research limitations/implicationsThis paper is based on company-level financial statements and hence does not include aspects related to human capital, managerial capacities, participation in the global value chain and collaboration with other industries or academia.Originality/valueThis paper uses alternative measures of innovation such as promotional expenses and holding of intangible assets by companies in India alongside R&D expenditure, which is largely used in the past literature. The company characteristics also include emerging areas such as digitalisation, and spending on environmental sustainability and social responsibility, in addition to the conventional factors such as firm size, age and exposure to exports.

Non-financial asset valuation at higher education institutions: The theoretical and practical aspects

Subject. This article focuses on the issues of initial and subsequent valuation of non-financial assets at Russian higher education institutions. Objectives. The article aims to analyze the provisions of the accounting policy of educational institutions for higher education in relation to the valuation of non-financial assets, compare them with the Federal Accounting Standards, identify problematic aspects, and determine the areas for their solution. Methods. The regulations on the accounting policy of twenty six higher education institutions of Russia in relation to the valuation of non-financial assets are the basis of the study. For the study, I used observation, comparison, generalization, and interpretation. Results. The article presents the results of the analysis of the composition of costs incurred by institutions in the process of creating an object of fixed assets. It also offers recommendations on the inclusion of interest expenses on long-term liabilities in the initial cost of non-financial assets during their construction (creation) using own resources and options for assessing the value of replaced (disposed) parts of fixed assets, and a methodology for their calculation. A list of expenses included in determining the initial cost of intangible assets created by higher education institutions on their own is also presented. Conclusions. To improve the accounting of transactions for the acquisition and creation of fixed assets, it is advisable to establish the procedure for allocating the costs of delivery of several fixed assets in the accounting policy of educational organizations, determine the methods of attributing additional borrowing costs, as well as establish the criterion for the materiality of such expenses. It is concluded that higher education institutions should have a unified methodology for accounting costs when carrying out regular scheduled overhauls, technical inspections and maintenance of fixed assets.

Patents in metaverse: an analysis of scope and challenges

ABSTRACT ‘Metaverse’ is set to be the disruptive technology which is about to bring an overhaul in the functioning of myriad sectors ranging from education, entertainment, health care, businesses amongst others. The key feature of this technology is the immersion of physical world into a virtual world. Metaverse in a way finds its roots on the technologies of Virtual/ Augmented Reality (VR/AR) which essentially are about simulating real world and augmenting the real – world experience in the digital world. Intellectual Property Rights which exist for protection of intangible assets, hence are vital in perspective of Metaverse. This research analyses the IP form of Patents in reference to Metaverse. Patents are an attractive choice due to the commercial advantage and the higher level of protection it offers compared to other IP forms. The trend of surge in patent applications seen with emerging technologies like AI and Blockchain is likely to be reflected with metaverse. The article views the metaverse and patent domain through an overarching lens gauging the possible scope and challenges. The analysis is based on US, EU and Indian patent laws to get a comprehensive picture across the world.

Persistence in the benefits of foreign ownership: Evidence from divestment

AbstractIn this paper, we examine the persistence of benefits from foreign ownership, which informs the proper FDI policies. We exploit the divestment of foreign affiliates in South Korea from 2007 to 2019 as a quasi‐experiment to estimate such persistence of benefits. Our empirical analysis at firm‐level based on the propensity score reweighted difference‐in‐differences model leads to several conclusions. First, on average, the productivity benefit from foreign ownership does not persist after the divestment. Second, the productivity benefit of foreign ownership is persistent in firms with a higher absorptive capacity, measured by R&D intensity, intangible assets, and skilled workers. Such persistence is strengthened if the former foreign affiliate has a longer duration of ownership before the divestment. It suggests that absorptive capacity and time input are helpful for foreign affiliates to persistently absorb knowledge from their owners. Finally, we find that the productivity benefits of foreign ownership are less persistent at former foreign affiliates relying more on external trade.

Supporting management decisions for M&A transactions based on the strategic allocation of intangible assets

In the context of mergers and acquisitions (M&A), management decisions regarding asset allocation play a key role in determining the strategic value of intangible assets. This study investigates the allocation of such assets, particularly goodwill, in relation to enterprise value on balance sheets across global M&A transactions within the B2C sector from 2000 to 2021. Utilizing data from the Markables database, which includes 543 transactions, this study presents robust and quantile regression analyses to effectively address challenges arising from non-normally distributed data. The findings underscore a significant correlation between the strategic allocation of intangible assets, especially goodwill, and enterprise value, highlighting their essential role in reflecting future earning potential and growth prospects. Additionally, the study reveals specific factors, including transaction type (asset vs. share deals) and timing (transaction year), that influence these asset allocation decisions. These insights are critical for enhancing management decisions in valuation and strategic financial planning during M&A. By elucidating these dynamics, this paper significantly contributes to the literature on management accounting and corporate finance, offering a granular understanding of the valuation of intangible assets in business combinations. Acknowledgment This study emerged from a cooperative project between the University of Applied Sciences Kufstein (Austria) and the University of Economics in Bratislava (Slovakia) 2023-05-15-003 “Enhancing long-term business value towards environmentally and socially sustainable economy,” which was funded by the performance committee of the Austria-Slovakia Action initiative.

The impact of ESG performance on intangible assets and intellectual capital in the food and beverage industry

PurposeThis study investigates how environmental, social, and governance (ESG) factors influence intangible asset and intellectual capital valuation within the food and beverage (F&B) industry. By examining and contrasting global and European contexts, the research highlights ESG’s critical role in shaping the economic dimensions of sustainability across different regulatory environments. The results provide essential insights for stakeholders aiming to enhance corporate value through responsible business practices.Design/methodology/approachWe adopt a quantitative fixed-effects panel regression analysis for ESG performance and intangible asset and intellectual capital values. The correlations between these variables are explored both globally and in the European Union using 1,034 observations from 502 F&B companies.FindingsGlobally, higher ESG performance corresponds to lower intangible asset values, a trend not observed in the European Union. Further, high ESG performance is associated with a decrease in intellectual capital value, suggesting that internal organisational efforts in this area should be rewarded in terms of short-term value.Originality/valueThis study provides a new understanding of the relationship between ESG performance, intellectual capital, and the F&B industry operating environment, highlighting the complexity and challenges associated with integrating ESG practices.