The intangible assets in startups: The problem of recognition and measurement

Abstract

 Intangible assets are a cornerstone in the operations of startups, especially those leveraging technological aspects, serving as their primary interface with customers. However, adherence to the International Financial Reporting Standard for Small and Medium-sized Entities, which excludes internally generated intangible assets, has led to discrepancies, lack of credibility, and transparency in their financial statements. This study aimed to address accounting challenges related to internally generating intangible assets, particularly for startups, Failure to recognize them results in neglecting a significant portion of the enterprise's assets.