Recognition of Identifiable Intangible Assets in Business Combinations. The Case of Poland

Abstract :

The aim of this paper is to investigate the initial recognition of identifiable intangible assets (IIAs) disclosed by classes in purchase price allocation process. As disclosures related to IIAs constitute significant value in the financial reports prepared after business combinations, the research question is: what is the scope of IIAs recognized by Polish companies? Our study provides empirical evidence on the initial recognition of IIAs while other studies mainly concentrate on subsequent measurement.?The empirical approach was based on a manual qualitative analysis of 100 consolidated financial reports published by Polish companies between 2012 and 2016. ?All companies chosen for the research are the publicly traded firms listed on the Warsaw Stock Exchange and indexed in WIG 20. Our study shows that the most frequent groups of IIAs are customer-related and marketing-related classes. Contrary to other research, we observed very few technology-based intangible assets. Although the frequency of IIAs disclosed by classes in our sample is relatively low, it is justified by the materiality of disclosures.