Capitalize or expense?

The mandatory adoption of IFRS for the group accounts of listed companies in the EU 2005 provides a unique dataset for analysis of reporting practices. This paper capitalizes on this data to explore the reporting for intangible assets in accordance with IAS 38. Our sample consists of the 2005 group accounts for 164 firms from the DOW JONES STOXX 200 index and thus represents the largest listed European companies. We analyze the quantitative significance of intangible assets, the amounts...