Abstract

Many experts consider that the lack of accounting for internally generated intangible assets is, among other
factors, to be blamed for the current financial crises. The current accounting regulators have not taken the
initiative towards creation of new accounting standard to identify or to allow the capitalization, recognition
and/or disclosure of these assets. This failure to properly identify, measure, and/or recognize the activities
associated with intangible assets, appear at a time when the accounting standards are in the process of regulatory
adjustments due to different view and ideas originating by the SEC, FASB and IASB. This paper explores some
of the conceptual issues related to the initial identification of internally generated intangible assets. In addition,
we propose an approach to recognize these assets in the financial statements using a hypothetical business
combination approach.

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