Faculty Publications

Title

Value relevance of customer-related intangible assets

Document Type

Article

Keywords

Accounting standards, Customer-related intangible assets, Goodwill, Valuation

Journal/Book/Conference Title

Research in Accounting Regulation

Volume

30

Issue

2

First Page

95

Last Page

102

Abstract

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.

Original Publication Date

10-1-2018

DOI of published version

10.1016/j.racreg.2018.09.010

Repository

UNI ScholarWorks, Rod Library, University of Northern Iowa

Language

en

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