World Academy of Science, Engineering and Technology 66 2010

Approaching Intangible Assets in the current Greek Entrepreneurial Environment

Gravas Eythymios1, Despina Galani, and Stravropoulos Antonios
AbstractIntangible assets as means of business activity (enterprise resources) and at the same time as tools for corporate strategy implementation, now more than ever constitute a crucial area of interest and research of accounting science and practice as well, not only in Greece but also in many European countries. This study attempts with a specific way to enumerate the main characteristics of intangible assets as they emerge in their relationship with respective definition of international literature and practice in order to construct a representative and coherent for them term in the current Greek entrepreneurial environment. The results indicate that the accounting framework for the intangible assets in Greece, despite the effort for accounting harmonization in Europe from 2005, sustain many differences especially for non listed companies. KeywordsGreek Accounting International Accounting Standards. I.
System, Intangible assets,

INTRODUCTION

entrepreneurial environment, careful observation and analysis of daily activities, decisions, tactics and strategies applied by people in the business world, leads us to conclude that maximize businesss value over time, remains for them the remarkable goal. In this respect, enterprises considered as economic entities which are trying to combine effectively their own resources, tangibles and intangibles so to create the necessary circumstances for the production and commercialization of their goods, with main target the acquisition of an important market share and at the same time the enhancement of their profitability. People as human beings and at the same time as entrepreneurs, more easily understand objects or situations with physical status, tangibles. In contrast its difficult for them to conceive concepts, objects or situation without physical substance. This view certainly finds acceptance and on the field of accounting theory and practice. An area of land owned by a company resulting from a past event or transaction and reflected in its financial statements, will be characterized easily by anyone interested for its course, internal or external user of accounting information, as a tangible asset or tangible mean of action. At the same time, in the majority of cases, the

N today's highly diversified and volatile, global economic

Gravas Eythymios: Scientific collaborator in the Department of Financial Application in the School of Management and Economics of the Technological Education Institute of Western Macedonia, Kila campus, Kozani, Greecce, Tel: +30 24610 40161, E-mail: ddg97@yahoo.com Despina Galani: Scientific collaborator in the Department of Financial Application in the School of Management and Economics of the Technological Education Institute of Western Macedonia, Kila campus, Kozani, Greecce, Tel: +30 24610 40161, E-mail: ddg97@yahoo.com Antonios Stavropoulos: Assistant professor of accounting at the department of Applied Informatics at University of Macedonia, 156 Egnatias, Thessaloniki, Greece. E-mail: stavrop@uom.gr
1

question whether apart from goodwill or from the legally protected intellectual property exist other intangible resources which could be attributed using a representative or common definition, is replaced by a single classification of them in the context of a national accounting plan or a mere description of their properties in the framework of national or international accounting standards, laws and doctrines. Intangible assets with no exception until now, under specific circumstances impressed in the financial statements of enterprises and utilized by them for the achievement of their entrepreneurial objectives and functions. As mentioned by reference[8], literature has been discussing the topic of intangible assets for a long time [11],[22]. During the last three decades, more and more theoretical attention has been given to intangible assets in the field of financial accounting. However, nowadays the importance of disclosing information related to intangible assets has increased significantly[5],[4]. Careful study of existing literature on intangible assets at the international level, leads us to the following relevant conclusions: Over time up to day, there are many definitions that were developed and attributed to intangible assets, based on different theoretical approaches. In the international literature many terms have been developed which can be alternatively used for impressing and reporting these specific productive elements: Intangible Assets, Intellectual Property, Intellectual Capital, Intellectual Assets, Knowledge Capital, Knowledge Based Assets, and Intangibles. In keeping with the existing literature on international accounting diversity, there are significant differences between countries in relation to the definitions and treatment of intangibles assets that can seriously limit the comparability of financial statements in an international context [9], [13]. Different countries accounting systems approach and envisage the concepts of definition and treatment of intangible assets with a different way. This in fact leads to a disharmony which subverts the efforts for international accounting harmonization. The remainder of this study proceeds as follows. In the next section we impress some of the most representative definitions for the intangible assets issued by the international literature and we detect their common characteristics. Moreover, the conceptual framework of intangibles in the current Greek accounting system is given. The third section presents the main subjects of IAS 38 Intangibles Assets and the accounting consequences derived from its implementation for Greek business from 2005 and onwards. The penultimate

964

World Academy of Science, Engineering and Technology 66 2010

section impresses the existent framework for intangible assets treatment in Greek accounting system issued by the current commercial law, the doctrines of the general accounting plan and the valid tax law. Our conclusions are presented in the final section. II. LITERATURE REVIEW

World Congress on worldcongress.mcmaster.ca).

Intellectual

Capital

Intangible assets Broad definition: Intangibles are non-physical sources of probable future economic benefits to an entity or alternatively all the elements of a business enterprise that exist in addition to monetary and tangible assets[29]. Intangible assets Narrow definition: Intangibles are non-physical sources of probable future economic benefits to an entity that have been acquired in an exchange or developed internally from identifiable costs, have a finite life, have market value apart from the entity, and are owned or controlled by the entity [29]. Intellectual capital: From capturing, coding and disseminating information, to acquiring new competencies through training and development, to re-engineering business processes[3]. Intellectual capital: The sum of everything everybody in the company knows that gives the company a competitive advantage in its marketplace[34]. Intellectual capital: The possession of the knowledge, applied experience, organizational technology, customer relationships and professional skills that provide (a company, ed.) with a competitive edge in the market[12]. Intangible assets: Invisible assets that include employee competence, internal structure and external structure [35]. Intellectual capital: The sum of the hidden assets of the company not fully captured on the balance sheet, and thus includes both what is in the heads of organizational members, and what is left in the company when they leave [31]. Intellectual capital: Knowledge that can be converted into profits Error! Reference source not found.. Intellectual capital: A term given to the combined intangible assets which enable a company to function, consisting of market assets, intellectual property assets, human-centred assets and infrastructure assets[6]. Intangible investments: Covering all long-term outlays by firms aimed at increasing future performance other than by purchase of fixed assets[20]. Intangibles: Non-physical factors that contribute to or are used in producing goods or providing services, or that are expected to generate future productive benefits for the individuals or firms that control the use of those factors[1]. Intangibles: Index scores, ratios, counts, and other information not presented in the basic financial statements[37]. Intangible assets: Assets that are neither tangible nor financial instruments; items that fail the definition of an asset, but are important elements of business success, are merely non - financial information [37].

A. Approaching intangible assets characteristics by impressing their definitions One of the most significant topics appeared in both the national and international accounting cognitive field is related to the intangibles assets definition and their treatment regarding their reporting, recognition criteria and value estimation over time (amortization, impairment, revaluation, etc.) The term definition in our study indicates the way that many authors (academics or accounting systems, etc.) conceive the concept of intangibles assets. At the beginning of the research effort for intangibles assets which chronologically found in the middle of 1990 decade, many authors have defined them according to the following equation used for the Intellectual Capital[12]: Intellectual Capital=Market Value-Book Value According to reference[37], the above definition has several drawbacks. The equation indicates that the entire difference between market and book value of a business is defined as the intellectual capital. The definition of the difference between market and book value of a business entity as the intellectual capital is defective and additionally arises many questions because this difference can be attributed to other factors unrelated to the intellectual capital such as stock prices fluctuations. In practice, there are two main types of approaching the definition of intangibles assets. The first type includes the definitions that characterized as actual or conceptual (definitions by opposition, tautological and real definitions), the second approach comprises a list of intangible assets Error! Reference source not found. These approaches are not mutually exclusive. In fact, a country, organization or accounting system that applies a conceptual approach to intangibles assets generally also supplies a list of intangibles mainly for reasons of presentation. Furthermore, towards the definition of intangible assets, it is observed a coincidence of views of many researchers who use the negative approach. In other words, defining what is or is not consistent with the meaning of intangible assets, differently, approaching the concept of tangibles, we reach our target to define the term of our interest, intangible assets[23]. Continuously, the most representative definitions of intangible assets issued by international literature are impressed. Intellectual capital: Intellectual capital consists of the study of innovation, knowledge management, new technology, intangible assets, intellectual property, human capital, organizational learning, and knowledge workers (McMaster

965

World Academy of Science, Engineering and Technology 66 2010

Intangibles: A claim to future benefits that does not have a physical or financial (a stock or a bond) embodiment [23]. Intangibles: Non-monetary sources of probable future economic profits, lacking physical substance, controlled (or at least influenced) by a firm as a result of previous events and transactions (self-production, purchase or any other type of acquisition) and may or may not be sold separately from other corporate assets [26]. Intellectual capital: Embraces all kinds of intangibles, either formally owned or used, or informally deployed and mobilized; it is more than the sum of the human, structural and relational resources of the firm, but also how to employ them to create value (connectivity capital) [26]. Intangible assets: Representing the set of intangibles or elements of IC, that are susceptible of being recognized as assets in accordance with the current accounting model [26]. Intellectual capital: Defined from a philosophical background as knowledge about knowledge, knowledge creation, and leverage into a (social or economic) value [27]. Intangible assets: From the public arena, formed by intangible wealth assets constituted by rights capable of economic valuation [33]. Intangible fixed assets: In the public sector, the term refers to a set of assets with the following characteristics: They are of intangible nature; they are the fruits of economic transactions that originate from disbursements; they have the ability to generate income in the future; They are of greater duration than a fiscal year; They depreciate over time and they hinder comparisons with market values [32]. Intangible assets: Are claims to future benefits that do not have a physical or financial embodiment [26]. Intangible assets: Are those assets that not being financial, lack physical substance [28]. Intangible fixed assets: Are the intangible economic goods which are subject to monetary valuation and at the same time its possible to be involved in an economic transaction either individually or as constituents of a whole business entity. Intangible assets acquired to be used productively for over a fiscal year and divided into the following two categories: - Patents, copyright agreements, trade marks or intellectual property. - Real situations, properties and relationships such as customer lists, reputation, customer loyalty, effective organizational structure of the entity and its specialization in the productive area, scientific or technical knowledge. In this latter category belong the elements that compose the concept of well-known term of goodwill, Fonds de commerce of the business entity. The existence of these elements, under specific productive and commercial circumstances, results a bigger value for the business entity in comparison with the value which is attributed to its individual assets [16].

Intangible assets: Identifiable non-monetary asset without physical substance held for use in the production or supply of goods or services, for rental to others, or for administrative purposes. Additionally, an asset is a resource controlled by an enterprise as a result of past events, and from which future economic benefits are expected to flow to the enterprise [19]. From the definitions given above its concluded that the most significant aspects in relation to intangible assets are: - Their intangible nature. - Possibly issued from economic transactions. - Constitute subject of accounting and financial valuation. - Contribute to the enhancement of enterprise growth and development. - Are combined with other assets (tangibles or intangibles) in the productive, commercial and entrepreneurial environment. -Businesses investing on intangible asset expect future economic benefits. -Globally, a great body of academics and accounting organizations have been involved in the process of defining intangible assets. Their efforts are also focused on the detection of effective manners for their accounting treatment. III. INTERNATIONAL REGULATIONS AND STANDARDS FOR
INTANGIBLE ASSETS

It is a common place the view that today academics and accountants face significant problems when dealing with intangible assets. This led to the development and modification of accounting rules and regulations internationally. Intangible assets as mentioned above can not be treated simply as the difference between market and book value of an enterprise. Upon till now, there has been very little information available, given by laws and national regulations regarding the identification of intangible assets [2].As a result, the financial information given to investors and financial analysts considered by deficiencies and dissimilation. This phenomenon is recorded as the information asymmetry. The usual accounting practice in relation to the recognition of intangible assets [22].summarized in an exclusive existence of a financial transaction from which a representative cost arises for the acquired intangible assets. Additionally, this cost should be directly connected with future profits for the enterprise. Internationally, there is great dispute among law settlers, accountants, academics and managers regarding the appearance and accounting treatment of the expenses associated with intangibles assets. Furthermore, there is no commonly accepted methods of intangibles assets valuation. Some argue that, for certain categories of intangible assets mainly for these which are internally generated, such as the expertise of business employees, the estimation of their value is almost impossible [15]. The absence of a reliable, transparent and effectively organized market for intangible

966

World Academy of Science, Engineering and Technology 66 2010

assets is also another obstacle for measuring the value of intellectual capital [14]. The inexistence of an objective valuation system for the intangible assets has led business, analysts as well as the financial advisors to prefer the narrative reporting of intangibles on balance sheets. Generally, its recommended the publishing of voluntary disclosures associated with the intangible assets additionally to financial statements and reports. This practise takes place in Australia, where a system of voluntary disclosures of the internally generated intangible assets is implemented [38]. Corresponding guidelines for the development and disclosure additional financial information for the internal generated intangible assets exist within the European Union. In the European Union, based on reference [30]. study published in 2006, small and medium size enterprises oriented to the knowledge and research are encouraged to publish additional accounting information related to their intellectual capital - intangible assets [30]. In an effort to tackle the problems of asymmetry regarding the information provided by financial statements to investors and the development of rules and procedures for the representation of economic value of intangible assets, in the USA, 2001, the Financial Accounting Standard Board (FASB) issued statements 141 and 142. Since 2002 listed companies in the USA have treated intangible assets and goodwill in accordance with these statements. The latter are considered as a major step for the international accounting practise and harmonization since for first time in the history of accounting authorized the analytical report of intangible assets for the enterprises participated in a takeover or merger and the measurement of their value by introducing and using the concept of fair value. Fair value is defined as the amount at which an asset could be bought or sold in a current transaction between the parties. Usually, estimated as the present value of expected net cash flows, generated by intangible assets [14]. Statement 141 outlines the types of intangibles that can be reported on balance sheets[2], [21]. Also provides that the depreciation will be made only for intangible assets with finite useful life and not for what they have indefinite useful lives. Statements 142 describes the method which should be implemented regarding the periodic control of impairment of intangibles assets value. Additionally, the amortization of goodwill is replaced by the periodic impairment testing which should be done once a year to ensure that fair value is not damaged and that the estimated useful life of intangibles remains realistic. Statements 141 and 142 of the FASB require that intangible assets and especially those developed internally can not be included in the business financial statements unless they meet certain criteria[18]: To be identifiable, controlled by the business, the future economic benefits derived from them expected to flow to the company, their cost can be reliably measured. The statements issued by FASB quickly adopted by the Canadian law in the context of harmonization of accounting

regulations in North America [Cole and White, 2003]. Formed the foundation for the development of international accounting standards or international financial reporting standards as they were renamed after 2001 issued by the International Accounting Standard Board (IASB). IASB quickly developed a set of standards for intangible assets similar to the U.S. statements 141 and 142. These are IFRS 3, IAS 36 and IAS 38, which since 01.01.2005 necessarily are implemented by all listed companies operating in member countries of the European Union in the context of accounting standards harmonization [EC Directive No. 1725/2003] [Commission Regulation 2006]. The same standards were adopted by Australia. Simultaneously significant efforts took place for achieving convergence between international and U.S. accounting standards [17]. IFRS 3 introduces regarding the financial statements published by business major changes. Additionally, defines that more intangible assets will be recognized. These assets are exactly equivalent to those of American standards. Furthermore, in accordance with standard IAS 38, intangible assets will be included in the company's balance sheet if and only if they meet the definition criteria of an intangible asset: Should be identifiable, controlled by the company, can be clearly distinguished from goodwill, the future economic benefits from those expected to flow to the company and finally their cost can be measured reliably [36]. IAS 38, determines how the value of intangible assets should be measured in relation to their generation and requires specified information for them to be disclosed in the financial statements such as their useful life, the method of depreciation, the coefficient of depreciation, explanations related to the estimation of their infinite useful life. The definition given by the IAS 38 to the fair value is similar to that given by American standards. The IAS 36 refers to the depreciation of assets, including intangibles and goodwill. The above regulations given by statements, standards and laws have caused significant impacts on daily businesses activities. At the same time undoubtedly influence the market. The adoption of new standards is an important step for essential information in relation to the valuation of intangibles assets and the appraisal of their contribution to the enhancement of the business value. However, the information gap regarding the value of intangible assets remains important. The view that the new standards focus mainly on cases of acquisitions and consolidations of businesses, entrepreneurial tactics and strategies with limited implementation in Greece entrepreneurial environment, in conjunction with the definitions for what should be valued and recognized exclude a large proportion of intangible assets. The most important problem is that neither standards nor local laws permit the valuation of intangible assets when they are generated internally. At this point the issue of recognition as expenses the internal research and development costs is introduced.

967

World Academy of Science, Engineering and Technology 66 2010

Additional problems arise in accordance with the depreciation of intangible assets in relation to their useful life. Especially when the indefinite useful life is selected. All these undoubtedly affect the elaboration and disclosure of financial statements at the international level, raise questions for their comparability and render exigent the requirement for a holistic accounting system comprised by methods and doctrines which encourage the valuation and the emergence of intangible assets in the financial statements. IV. THE ACCOUNTING REQUIREMENTS FOR INTANGIBLE ASSETS IN GREECE

January 2005 was shaping up to be a key date in the world of accounting. European Union countries had all announced a commitment to the full adoption of IASs/IFRSs on the first of January 2005 for the consolidated financial statements of listed companies. In Greece, International Accounting Standards are used as the basis for the elaboration and presentation of financial statements. The unlisted companies can choose whether implement IAS together with Greek regulation based on Greek National Accounting Plan. In accordance with Greek national accounting plan, intangible assets are monitored by the account 16 Intangible assets. Intangible assets acquired to be used productively for over a fiscal year and divided in two categories: Patents, trade marks or intellectual property. Real situations, properties and relationships such as customer lists, reputation, customer loyalty, effective organizational structure of the entity, scientific or technical knowledge. In the latter category comprised the elements that compose the concept of well-known term of goodwill. The intangible assets acquired individually are recognized in the acquirers financial statements at their cost of acquisition. Internal developed intangible assets are recognized in the financial statements under specific circumstances in relation to the actualizations of the related expenses and the possibility of piecemeal amortization of their cost in a definite period bigger than a fiscal year. The account goodwill includes the goodwill created from a business combination. That is, when two separate entities are combined into one. When an entity acquires another entity, all the identifiable assets of the acquired entity are recognized at the fair value in the consolidated financial statements of the group that the acquired entity now belongs. The difference between the fair value of the identifiable assets of the acquired entity and the price paid for their acquisition is recognized as goodwill in the groups consolidated financial statements. The goodwill of the entity is depreciated completely or gradually in five fiscal years, with coefficient 100 or 20 percent relatively. Under by Greek law the intangible assets are capitalized and amortized on a straight-line basis over a period, not exceeding five years. Some intangible assets are amortized

during the period of its useful life or their time period which is defined in accordance with specific legal rights, derived from contracts or licenses. In accordance with Greek law and regulations, intangible assets are measured at their cost of acquisition. Some expenditures such as the establishment costs that incurred for establishing a legal entity and expenditures for the acquisition of fixed assets are expenses that amortized on a straight-line basis over a period, not exceeding five years. Research expenditure is recognized either as an expense or is capitalized and amortized in three years. Accordingly IAS 38, the majority of intangible assets are expensed in the period in which incurred. Intangible assets capitalized if it is probable that the future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably. The depreciation must be systematically over the useful life on the intangible asset and may not exceed 20 years. Regarding the expenditures for the acquisition of assets, must be included in the acquisition cost of the asset and not a separate intangible asset. V. CONCLUSIONS

In today's highly diversified and volatile, global economic entrepreneurial environment, careful observation and analysis of daily activities, decisions, tactics and strategies applied by people in the business world, leads us to conclude that maximize businesss value over time, remains for them the remarkable goal. Enterprises considered as economic entities which are trying to combine effectively their own resources, tangibles and intangibles so to create the necessary circumstances for the production and commercialization of their goods, with main target the acquisition of an important market share and at the same time the enhancement of their profitability. Intangible assets with no exception upon till now, under specific circumstances impressed in the financial statements of enterprises and utilized by them for the achievement of their entrepreneurial objectives and functions. There are many definitions that were developed and attributed to intangible assets, based on different theoretical approaches. In the international literature many terms have been developed which can be alternatively used for impressing and reporting these specific productive elements: Intangible Assets, Intellectual Property, Intellectual Capital, Intellectual Assets, Knowledge Capital, Knowledge Based Assets, and Intangibles. In keeping with the existing literature on international accounting diversity, there are significant differences between countries in relation to the definitions and treatment of intangibles assets that can seriously limit the comparability of financial statements in an international context. Different countries accounting systems approach and envisage the concepts of definition and treatment of intangible assets with a different way. This in fact leads to a disharmony which subverts the efforts for international accounting harmonization. Since 2005 the implementation of

968

World Academy of Science, Engineering and Technology 66 2010

international accounting standards imposed for the listed companies of Greece in the framework of European Union. Many problems in relation to the recognition, measurement and treatment of intangible assets, remain for the non listed companies in Greece despite the introduction of the international accounting standards from 2005. REFERENCES
[1] Blair, M.M. and Wallman, S.M.H. (2001), Unseen Wealth Report of the Brookings Task Force on Intangibles, The Brookings Institution, Washington, DC. Boekstein, B. (2006). The relation between intellectual capital and intangible assets of pharmaceutical companies, Journal of intellectual Capital, Vol. 7 (2), 2006, p. 241. Bontis, N. (1996), Theres a price on your head: managing intellectual capital strategically, Ivey Business Journal (formerly Business Quarterly), Summer, pp. 40-7. Bontis, N. (2003), Intellectual capital disclosure in Canadian corporations, Journal of Human Resource Costing and Accounting, Vol. 7 Nos 1/2, pp. 9-20. Botosan, C. (1997), Disclosure level and the COEC, The Accounting Review, Vol. 72 No. 3, pp. 323-49. Brooking, A. (1998), Intellectual Capital, International Thomson Business Press, London. Bruvons, R. and Kirsh, R.J. (1991), Goodwill accounting in selected countries and the harmonization of international accounting standards, Abacus, Vol. 27 No.2, September, pp. 135-61. Canibano L., Garcia-Auso, M. and Sanchez, P., 2000, Accounting for intangibles:a literature review, Journal of Accounting Literature, Vol. 19, pp. 102-30. Canning, J.B, 1929, The Economics of Accountancy, Roland Press Company, Swansea. Commission Regulation (2006). Commission Regulation (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with regulation (EC) No 1606/2002 of the European Parliament and of the Council, 2003R1725-EN 30. 01.2006-006.001-1. Dicksee, L.R., (1897); Goodwill and its treatment in accounts, Accountant, January 9, pp.40-8. Edvinsson, L. and Malone, M.S. (1997), Intellectual Capital: Realizing your Companys True Value by Finding Its Hidden Brainpower, HarperCollins Publishers, New York, NY. Emenyonou E. and Gray, S.J. (1992), ECaccounting harmonization: an empirical study of measurement practices in France, Germany and the UK, Accounting and Business Research, VOL. 23 No. 89, pp.49-58. Ghafele,R.http://www.wipo.imt/sme/en/documents/ip_accounting.html (2004). Getting a Grip on Accounting and Intellectual Property, http://www.wipo.imt/sme/en/ documents/ip_accounting.html. Goslin, P. (2002), Accounting for Intellectual Property, Thomson Scientific, http://scientific.thomson.com/knowtrend/ipmatters/acctecon/8179924. Greece, General Accounting Plan, 1990. Hatziloukas, T., Winter, R., (2005), Special Focus Charter, Reporting the Value of acquired intangibles assets, PricewaterhouseCoopers LLP, Globe White Page publishers. Housel, TJ, Nelso, SK (2005), Knowledge Valuation Analysis: Applications for Organizational Intellectual Capital, Journal of Intellectual Capital, Vol. 6 (4), 2005, p.544. IASB, IAS 38, 1998. Johanson, U. (2000), Characteristics of intangibles proposals generated from literature and experienced Swedish firms, in Grojer, J.E. and Stolowy, H. (Eds), Classification of Intangibles, Groupe HEC, Paris, pp. 56-77. Laurie, R., (2004), The role of Claims Construction in Patent Valuation, Advanced Topics in IP Valuation and Analysis, IP Society, July 2004, Paolo Alto, http:www.ipstrategy.com/downloads/IP_Soc_RoleoofClaimsConst.pdf Leake, P.D., (1914), Goodwill : its nature and how to value it, Accountant, January, pp.81-90. Lev, B., 2001, Intangibles: Management, Measuring and Recording. Washington, DC.: Brookings Intitution Press. P5.

[2]

[3]

[4]

[5] [6] [7]

[8]

[9] [10]

[24] Lloyd Austin, 2007, Accounting for intangible assets, The university of Auckland, Vol. 9, No 1, pp. 62-72. [25] London Sullivan, P.H. (1998), Introduction to intellectual capital management, in Sullivan, P.H. (Ed.), Profiting from Intellectual Capital: Extracting Value from Innovation, Wiley, New York, NY, pp. 3-18. [26] MERITUM (2002), Guidelines for Managing and Reporting on Intangibles, TSER Programme, MERITUM, Tucson, AZ. [27] Mlbjerg-Jrgensen, K. (2006), Conceptualising intellectual capital as a language game and power, Journal of Intellectual Capital, Vol. 7 No. 1, pp. 78-92. [28] North America FASB, Standard No. 142, 2001b. [29] NYU Stern Intangibles Research Center. [30] RICARDIS (2006). Reporting Intellectual Capital to Augment Research, Development and Innovation in Smes, Report by an Expert Group, European Commission, EUR twenty-two thousand and ninety-five EN, June 2006, http://ec.europa.eu/invest-in-research/pdf/download_en/2006 -2977_web1.pdf. [31] Roos, G., Roos, J., Dragonetti, N. and Edvinsson, L. (1997), Intellectual Capital: Navigating in the New Business Landscape, New York University Press, New York, NY. [32] Spain, Document No. 3, AECA, 1991. [33] Spain, General Accounting Plan, 1990. [34] Stewart, T.A. (1997), Intellectual Capital: The New Wealth of Organizations, Currency Doubleday, New York, NY. [35] Sveiby, K.E. (1997), The New Organisational Wealth Managing and Measuring Knowledge-based Assets, Berrett-Koehler, San Francisco, CA.Upton, 2001. [36] Tayles, M., Webster, M., Sugden, D., Bramley, A. (2005), Accounting "gets real" in dealing with virtual manufacturing, Journal of Intellectual Capital, Vol. 6 (3), 2005, p. 322. [37] Upton, W.S. (2001), Business and Financial Reporting, Challenges from the New Economy, FASB Special Report No. 219, Norwalk, CT. [38] Zambon, S. (2003), Study on the Measurement of Intangibles Assets and Associated Reporting Practices, prepared for the Directorate General Enterprise of the European Commission, April 2003, http:// ec.europa.eu / enterprise / services / business_related_services / policy_papers_brs / intangiblesstudy.pdf.

[11] [12]

[13]

[14]

[15]

[16] [17]

[18]

[19] [20]

E. Gravas: has been working for two years as consultant of financial affairs for the prefecture of Kozani, Greece. He is a Phd candidate at the University of Macedonia in Thessaloniki in Accounting. He holds a Master degree in business administration and a BSc in finance and accounting from the University of Macedonia, Thessaloniki, Greece. His current research interests related to intangible assets, their valuation and their accounting treatment. He can be contacted at: makisgravas@yahoo.gr D. Galani: Despina Galani is currently working as a scientific collaborator in the Department of Financial Application in the School of Management and Economics of the Technological Education Institute of Western Macedonia and she is a Phd candidate at the University of Macedonia in Thessaloniki in Accounting. She holds an Msc in Applied Statistics from the University of Wales, UK, an MSc in Applied Computing and Information Technology from the University of Macedonia, Greece and a BSc in Statistics from University of Piraeus, Greece. Her current research interests include entrepreneurial activities, investment initiatives for SMEs and accounting. She can be contacted at: ddg97@yahoo.com A. Stavropoulos: He is an assistant professor of accounting at the department of applied informatics at University of Macedonia, Greece. His scientific interests related to the financial accounting and financial statement analysis. He can be contacted at: stavrop@uom.gr

[21]

[22] [23]

969