Question 1. (20 marks)

One of the consequences of the introduction of IFRS in Australia in 2015 was that listed companies could no longer disclose information about some intangible assets. Authors suggest that the impact of the exclusion of some assets, for example intellectual capital, has had a major impact on the value of corporations as reflected in financial statements.

Identify THREE (3) stakeholders that might be impacted by the exclusion of information on intangible assets from the financial statements of corporations. For each stakeholder you identify, specify why you believe they are impacted. (6 marks)

From your knowledge of voluntary disclosure research, what do you think would motivate management to disclose voluntarily to the stakeholders identified in part (a) above? (4 marks).

Suggest TWO (2) ways companies might fairly value their intangible assets. (4 marks).

Why do you think IFRS does not allow for intangible assets to be disclosed? (1 mark).

What are the benefits of global adoption of IFRS? (5 marks)