Explain How AASB 138 "Intangible Assets" May Disadvantage Australian Start-Up

question 40

Essay

Explain how AASB 138 "Intangible assets" may disadvantage Australian start-up companies with heavy research and development activities. Contrast this with US start-up companies.
Refer to Page 302, section headed "Are the new approaches to accounting for intangibles an improvement?".

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Definitions:

Priming

A psychological phenomenon where exposure to one stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Entrepreneurial Behavior

Actions and attitudes that reflect an inclination towards innovation, risk-taking, and the creation of new value or business ventures.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Risk Assumption

The act of taking on the potential for loss or harm as part of a project, investment, or business, often in pursuit of a reward.