The Fundamentals of Financial Accounting and Reporting

Abstract

To study the current state and future prospects of intangibles in financial accounting and reporting, it is necessary to obtain an understanding of the accounting function and its underlying theories. That is because the latter generally determines the purpose of a financial accounting and reporting system. The design of such a system again is based upon pre-defined objectives. Therefore, the discussion of fundamentals establishes principles that may be used to further analyze the financial accounting and reporting of intangibles and to identify potential shortcomings of current standards.