Scholarly Paper aus dem Jahr 2006 im Fachbereich Wirtschaft - Investition und Finanzierung, Note: A-, Fachhochschule für Ökonomie & Management Essen, Veranstaltung: International Finance, 11 Eintragungen im Literaturverzeichnis, Sprache: Englisch, Abstract: The traditional accounting is still based on the previous industrial economic epoch which is focused on large scale production. However, in the eighties at the latest a transformation process towards a service- and today's knowledge economy occurred. The added value is hereby based on the intangible assets. These are defined as assets that are not physical in nature. Intangible assets can be e.g. customer lists, know how, patents, copyrights, trademarks or goodwill.

That means that companies generate additional added value if they invest in intangible assets. This is proven by the fact that even in the manufacturing industry intangible assets make more profit than the tangible assets. Additionally new industries occur (e.g. software and/or pharmaceutical industry) that are mainly based on knowledge.

Apart from the development of an increasing importance of intangible assets, there are only minor changes in the management-, accounting-, and controlling instruments. Expenses for the creation of intangible assets, e.g. training and personnel development measures are still not allowed to be capitalized but rather posted as expense in the profit and loss statement. However even those are constituted as future-oriented investments that are not covered due to the given accounting practice. As consequence for the companies revised assessment and management systems are obedient due to the fact that traditional methods do not have the ability.