An analysis of the use and disclosure of intangible assets by LSE- and NGX-listed companies

Purpose The study offers insights into the use and disclosure of intangible assets by companies listed on the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NGX).Motivation Intangible assets are increasingly important in modern business models. Despite this, International Accounting Standard 38 Intangible Assets (IAS 38) has not been substantively revised in decades. This study contributes to the International Accounting Standards Board's (IASB) planned comprehensive review of the standard.Methodology Content analysis was used to collect data from the audited annual financial statements of companies listed on the London and Nigerian Stock Exchanges. Data was analysed using descriptive and inferential statistics.Main findings Insignificant increases were noted in the disclosure of intangible assets in the past decade. Substantial increases were noted in the disclosure of unrecognised intangible assets. This suggests the inability of IAS 38 to serve the information needs of modern businesses.Practical implications The study may be used to inform future research by providing areas of focus for the review and reform of IAS 38.Contribution This study contributes to the IASB's project to comprehensively review IAS 38 by providing insight into the use, accounting, and disclosure of intangible assets in developing and developed economies.