Conceptual Fair Value Accounting for Internally Generated Intangible Assets for Bulgarian Companies

Abstract

This paper explores some of the conceptualissues related to reporting internally generatedintangible assets at fair value for Bulgarian Enterprises. For the scope of this paper, we evaluate the current accounting framework for intangible assets (both externally and internally generated) and its implications for small and middle size enterprises in the corporate Bulgarian settings. We note that some of the conceptual findings in this paper could be utilized as basis for further comprehensive research on intangible accounting for other countries. In addition, we argue that the principles and guidance for identifying the existence of externally generated intangible assets as a result of business combinations could be adopted for assessing whether internally generated intangible assets exist. That is, we believe thatinternally generated intangible assets can be recognized and presented in the financial statements at their fair value according to applicable accounting standards.