What will the impact on society be if the AASB decides to treat purchased and internally generated intangible assets in an identical manner? Give reasons to support your answer.

What do YOU think ?
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Show us what you have done and where you are having problems..

The problem I am having is that I can't find any relevant answer to my question. I can find out what impacts certain intangiible assets like research and development can have on society. A basic example would be researching to make a cellphone in a better way which can result in its cost going down. I just know what the difference between a purchased and internally generated intangible asset is but I have no clue as to what happens when the Australian Accounting Standards Board treats them both in an identical manner and what will its impact on society be

The problem I am having is that I can't find any relevant answer to my question. I can find out what impacts certain intangiible assets like research and development can have on society. A basic example would be researching to make a cellphone in a better way which can result in its cost going down. I just know what the difference between a purchased and internally generated intangible asset is but I have no clue as to what happens when the Australian Accounting Standards Board treats them both in an identical manner and what will its impact on society be

you should start by including some detail in your question because what you wrote seemed like only one part of a multi part question.

I don't understand why we are concerned about an impact on society. The only impact is likely to be a increase in taxation revenue or an increase in dividends due to expenses being capitalised. There really is no difference whether the asset is generated from external costs or internal costs, such as an research and development department, the question is; has an asset being generated by these activities, often this can only be determined after the event. A good rule with intangiables is, if they exist, write them off as quickly as possible because in a shifting market what is valuable today is worthless tomorrow