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Assessing the Alignment of IAS 38, IVS 210, and ISA 620: A Study on Intangible Asset Valuation Standards

In: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Dubrovnik, Croatia, 5-7 September, 2024

Author

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  • Georgiou, Andreas

Abstract

This article explores the regulatory frameworks governing intangible assets across three key standards: IAS 38 (accounting), IVS 210 (valuation), and ISA 620 (auditing). Employing both automated and manual similarity analysis techniques, the study investigates the structural and thematic alignment of these standards. Principal Component Analysis (PCA) using Voyant Tools and Python-based machine learning techniques, specifically TF-IDF vectorization and cosine similarity analysis, provide an initial textual similarity assessment, followed by a binary-variable-based statistical analysis using SPSS. The study categorizes the comparative analysis into four major themes: recognition and measurement, disclosure and reporting, valuation approaches, and audit considerations. Findings indicate strong alignment between IAS 38 and IVS 210 regarding recognition criteria, valuation methods, and disclosure practices, while ISA 620 exhibits divergence due to its broader audit-centric focus. The results highlight potential gaps in standard harmonization and suggest avenues for refining the treatment of intangible assets in financial reporting, valuation, and auditing frameworks.

Suggested Citation

  • Georgiou, Andreas, 2025. "Assessing the Alignment of IAS 38, IVS 210, and ISA 620: A Study on Intangible Asset Valuation Standards," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2024), Hybrid Conference, Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Dubrovnik, Croatia, 5-7 September, 2024, pages 428-466, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    • Handle: RePEc:zbw:entr24:317978
    DOI: 10.54820/entrenova-2024-0035
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    References listed on IDEAS

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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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