Provide supports the view of the standard setters

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Under current accounting rules, companies cannot recognise internally generated goodwill in their balance sheet. Baruch Lev, an accounting professor at NYU calls this "19th century accounting." In an era when so many companies rely upon their brand and knowledge about their customers to drive sales, this obscures important information from investors. However, standard setters such as the IASB and FASB argue that valuation on such intangibles is far too complex to justify on a cost/ benefit basis.

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Question 1: Provide supports the view of the standard setters.

Reference no: EM132519369

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