Measuring the Convergence Degree between Accounting and Valuation Standards: Case Study on Intangible Assets

Abstract

This research measures the convergence between fair value accounting and valuation regulations in the case of intangible assets. In this respect, it analyzes through an empirical approach the accounting and valuation rules and the determinant factors of the similarities or dissimilarities between them. It brings forward three areas of analysis with normative and practical significance. The findings indicate a moderate convergence degree between the accounting and valuation regulations. The major causes for this dissimilarity appear to be the conceptual outlook and disclosure requirements, while for valuation treatment there seems to be a very high degree of similarity. The recommendations of this study to the two standard setters may trigger a growth of the users’ confidence in the valuations based on IVS, more clearly determined and more consistently described and disclosed, as well as to the improvement of the usefulness of financial reporting by reducing information asymmetry.

Keywords: valuation for financial reporting, IVS, IFRS, correlation degree, intangible assets