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Abstract
In business combinations, following IFRS 3 and SFAS 141 the acquiring company must recognized the entirety of intangible assets of the acquired company either as separately identified assets or under the aggregate asset "goodwill'. The identifying and separating of intangible assets is a difficult activity. The intangible assets identified in each transaction vary across the industries. This situation can be explain by the fact that the key intangible value drivers differ significantly across industries
In this paper I have concerned with identification of intangible assets specific to a number of industries characterized by having a high proportion of intangible assets. In man y companies and industries can been identified both common (well accepted) types of intangible assets such as intellectual property (such as trademarks, copyrights, patents, or research and development), technology, customer base, brand names and unique intangible assets specific to that industry or enterprise.
Keywords: intangible assets, purchase, price strategy, industry identification
JEL classification: G32, G34
Introduction
The accounting for business combinations within the US GAAP and IFRS accounting sistems has changed fundamentally since the introduction of SFAS 141 in 2001, and IFRS 3 in conjunction with IAS 38 in 2004. According to these new accounting frameworks (FAS 141, IFRS 3), a business combination occurs when an enterprise acquires the net assets that constitute a business or equity interest of one or more enterprises and obtains control over that enterprise or enterprises.
The accounting standards (IFRS 3, FAS 141) require the application of the acquisition method to all business combinations. Under this method, businesses acquisitions have to be accounted for like "asset deals". That is, the acquiring company must recognize the individual assets and liabilities of the acquiree (including contingent liabilities) in its financial statements.
The acquiring company must recognize and measure (at fair value in most cases) 100 percent of the assets and liabilities of the acquiree even if less than 100 percent of the acquiree was obtained.
The new accounting standards require the international companies to report the fair value of assets and liabilities acquired in their financial statements. As a consequence the acquiring company must determine the current fair values of all identifiable tangible and intangible assets, liabilities and contingent liabilities of the purchased company.
According to IFR 3...