Recognition and Measurement of Intangible Assets in the Technology Industry based on IFRS

With the intensification of competition among enterprises, the accuracy of intangible asset accounting has become an important indicator for evaluating the efficiency of enterprise cost management. Unlike traditional manufacturing enterprises, the technology and IT industries have a relatively large proportion of intangible assets, and changes in research and development expenditures can affect the strategic decisions of technology company management. Therefore, the correct accounting treatment of intangible assets is crucial for the sustainable development of technology companies. Currently, IFRS IAS38 specifies the accounting standards for intangible assets. However, due to the complex nature of intangible assets in technology companies and the unclear definition of capitalization in the research and development process, many technology companies need help in accounting for the scope, time, value, and other aspects of intangible assets. This article is based on the preparation of intangible assets under international accounting standards, elaborates on the theoretical basis behind the current practice of technology companies, analyzes the problems in the recognition and measurement of intangible assets in technology companies, and aims to improve the accurate understanding of international financial reporting standards and help enterprises improve the recognition and measurement of intangible assets.