ACCOUNTING FOR INTELLECTUAL PROPERTY IN BANKS IN ACCORDANCE WITH THE REQUIREMENTS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
Keywords:
intellectual property, banks, IAS 38, intangible assets, bank financial statement, intangible asset measurement.Abstract
One important but frequently disregarded component of financial reporting is how banks handle intellectual property (IP) in their accounting. Software, patents, and trademarks are examples of intellectual property that is becoming more and more important to financial organizations' value propositions. In accordance with the International Financial Reporting Standards (IFRS), this article examines how banks identify, quantify, and disclose their intellectual property assets. It looks at how important IFRS standards, such IAS 38 and IFRS 3, affect the way intangible assets, including intellectual property, are accounted for. The difficulties banks have valuing intellectual property, particularly when it comes to acquisitions or internal development, and the consequences for financial statements and performance indicators are also covered in the article. Through a detailed analysis, this paper highlights the importance of transparent and consistent reporting of intellectual property to provide stakeholders with accurate insights into a bank’s financial health.
References
1. Elekwa, A. (2024). Banking on Intellectual Property: Prospects and Problems of IP-Backed Finance. Available at SSRN 4830708.
2. Saragih, R. V., & Widiarty, W. S. (2022). Intellectual Property Rights as Bank Credit Guarantee. International Journal Of Artificial Intelegence Research, 6(1).
3. Hsu, P. H., Wang, C., & Wu, C. (2013). Banking systems, innovations, intellectual property protections, and financial markets: Evidence from China. Journal of Business Research, 66(12), 2390-2396.
4. SH, M. (2020). Dysfunctional regulations and ineffective implementation of intellectual property rights–based banking collateral: A critical analytical study. NTUT Journal of Intellectual Property Law and Management, 58.
5. Abd Al-Ghazi, A. J. K. (2023). Application of IAS 38 to improve the quality of accounting information (quality of profits) An applied study of a sample of banks listed on the Iraq Stock Exchange. Al-Qadisiyah Journal for Administrative and Economic Sciences, 25(3), 207-224.
6. Abebe Zelalem, B., & Ali Abebe, A. (2022). Does intangible assets affect the financial performance and policy of commercial banks’ in the emerging market?. PloS one, 17(8), e0272018.
