Value relevance of customer-related intangible assets
Accounting standards, Customer-related intangible assets, Goodwill, Valuation
Research in Accounting Regulation
This study examines the stock market's valuation of customer-related intangible assets for a sample of publicly-traded U.S. firms. Customer-related intangible assets are found to be positively associated with equity prices, but valued at a discount relative to goodwill. These results suggest that value-relevant information is lost if customer-related intangible assets are subsumed into goodwill rather than being reported separately. This evidence can be useful to standard setters potentially considering extending to public companies a recent FASB Accounting Standards Update allowing private companies not to recognize separately from goodwill certain customer-related intangible assets.
Department of Accounting
Original Publication Date
DOI of published version
UNI ScholarWorks, Rod Library, University of Northern Iowa
Bauman, Mark P. and Shaw, Kenneth W., "Value relevance of customer-related intangible assets" (2018). Faculty Publications. 660.