Value relevance of intangible assets before and after FRS 138 adoptions: Evidence from Malaysia

3Citations
Citations of this article
34Readers
Mendeley users who have this article in their library.

Abstract

The economic environment has changed from the era of agriculture, industrial and now to an information era. In this information era, intangible assets dominate the environment compared to during industrial era that was mainly dominated by tangible assets. Intangible asset plays an important role in today's economy with the shift from being an industrialised economy to a high-tech and service-oriented. In Malaysian capital market, there is an upward trend of intangible assets development. Hence, the question of whether the value relevance of intangible assets is properly reflected in financial statements arises. The objective of this study is to examine the value relevance of intangible assets in Malaysia before and after the adoption of FRS 138. This study used a sample of 113 public listed companies from four main sectors namely Industrial Product, Trading services, Consumer Product and Technology. The period under study was divided into two, that is, pre adoption period (2002-2005) and post adoption period (2008-2011) to observe if there were any improvements on the value relevance of intangible assets after the adoption of International Financial Reporting Standards (IFRS). The data was analysed to examine the value relevance of intangible assets in Malaysia before and after the adoption of FRS 138. The finding of this study suggests that intangible assets are value relevant in the pre adoption period but are not value relevant in the post adoption period. This study may contribute to the existing literature on the economic consequences of adopting IFRS and also preliminary indication of the impact of FRS 138 adoption.

References Powered by Scopus

Theory of the firm: Managerial behavior, agency costs and ownership structure

35764Citations
N/AReaders
Get full text

Job market signaling

8842Citations
N/AReaders
Get full text

A two-step approach for transforming continuous variables to normal: Implications and recommendations for IS research

591Citations
N/AReaders
Get full text

Cited by Powered by Scopus

Management of intangible aspects considering agricultural business development

0Citations
N/AReaders
Get full text

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Cite

CITATION STYLE

APA

Azin, N. A. B. N., & bt Alias, N. (2019). Value relevance of intangible assets before and after FRS 138 adoptions: Evidence from Malaysia. International Journal of Financial Research, 10(3), 267–279. https://doi.org/10.5430/ijfr.v10n3p267

Readers over time

‘19‘20‘21‘22‘23‘24‘25036912

Readers' Seniority

Tooltip

PhD / Post grad / Masters / Doc 10

48%

Lecturer / Post doc 6

29%

Professor / Associate Prof. 4

19%

Researcher 1

5%

Readers' Discipline

Tooltip

Business, Management and Accounting 11

52%

Engineering 4

19%

Economics, Econometrics and Finance 4

19%

Agricultural and Biological Sciences 2

10%

Save time finding and organizing research with Mendeley

Sign up for free
0