Situation of intangible assets in Spanish firms: an empirical analysis
| DOI | https://doi.org/10.1108/14691930510574690 |
| Date | 01 March 2005 |
| Pages | 105-126 |
| Published date | 01 March 2005 |
| Author | Isabel Gallego,Luis Rodríguez |
| Subject Matter | Accounting & finance,HR & organizational behaviour,Information & knowledge management |
Situation of intangible assets
in Spanish firms:
an empirical analysis
Isabel Gallego and Luis Rodrı
´guez
Department of Business Administration, University of Salamanca,
Salamanca, Spain
Abstract
Purpose – The purpose of this work is to analyze, both from a theoretical and an empirical point of
view, the significance of intangible assets in Spanish firms.
Design/methodology/approach – To perform this study Spanish firms listed in the Spanish
Securities and Exchange Commission (CNMV) were examined, in which intangible assets play a
significant role in their business models. Using a questionnaire of 25 items, the final sample consisted
of 39 firms (response rate ¼15.2 per cent) that could be used for the analyses. From the information
thus gathered, a statistical treatment was implemented using the SPSS computer program and the
answers to each of the 25 items were analysed. An analysis of principal components in the question
was also established, in order to summarize all 12 reasons proposed into just a few factors.
Findings – Among others, certain relevant conclusions about intangible assets indicated that:
Spanish firms have moved from an industrial economy toward a knowledge-based economy; the
disclosure of information about intangible assets in Spanish firms is still limited; some of the most
relevant intangible assets are customer relationships, employee experience, information technologies,
brand image, procedures and systems; and the number of indicators used by Spanish firms is about 20.
Research limitations/implications – To select the sample for the questionnaire the database of
the CNMV was used. The final sample thus comprised 257 firms, but the authors finally received
answers from 39 firms.
Practical implications – The paper is a very useful source of information for the Spanish firms and
for investigators in this subject.
Originality/value – This paper is pioneering in the analysis of the situation of intangible assets in
Spanish firms, as well as in determining some of the most relevant intangible assets used by those
firms.
Keywords Intangible assets,Intellectual capital, Spain
Paper type Research paper
1. Introduction
One of the most significant topics to appear in the reporting of firms in both the
national and international arenas is that relating to the treatment of intangible assets
or intangible resources. Although traditional intangible assets, such as research and
development (R&D), goodwill, etc., are recognized in the annual accounts of firms,
there are other intangible assets that affect all areas of the firm, such as organization,
marketing, finances, etc., and that are not recognized in annual accounts. Nevertheless,
these resources create an important and crucial value for the organization. Such
intangible assets are not identifiable in explicit form and are therefore hig hly
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The authors acknowledge Esther del Brı
´o, David Crowther and the reviewers’ useful comments
in previous versions of the paper.
Situation of
intangible assets
in Spanish firms
105
Journal of Intellectual Capital
Vol. 6 No. 1, 2005
pp. 105-126
qEmerald Group Publishing Limited
1469-1930
DOI 10.1108/14691930510574690
problematic since they are not generally recognized with a common definition,
valuation and management. Additionally, there is little empirical evidence to provide
information about the current status of such intangible assets in Spanish firms.
This situation has prompted us to carry out research, both theoretical and empirical,
into the field. To conduct the present work we used the most current and relevant
references available regarding the topic. Our aims were dual: on the one hand, we
wished to develop a panoramic view of the different theoretical aspects concerning
intangible assets and, on the other, we wished to carry out an empirical study of the
relevance of such assets in Spanish firms. In doing so, we took as a reference point the
firms registered in the National Commission of the Stock Market on December 31, 2001,
these firms being representative of different types of activity.
In order to achieve the above aims, we developed our work as follows: after the
introduction, we consider definitions of the most relevant intangible assets from the
points of view of official standards and of suggested classifications. Next, we address
the problems arising from the valuation and management of such assets and revie w
the empirical work on intangible assets, focusing on the most current contributions. To
develop our own empirical part, we describe the objectives that we are attempting to
achieve, indicating the methodology applied to the investigation. Finally, we offer an
explanation of the results obtained and discuss the general conclusions of the wor k.
2. Most relevant aspects of the definitions and classifications of intangible
assets
Beginning with International Accounting Standard IAS 38, issued by the IASB in July
1998, intangible assets are defined as an identifiable non-monetary asset without
physical substance held for use in the production or supply of goods or services, for
rental to others, or for administrative purposes. An asset is a resource controlled by an
enterprise as a result of past events, and from which future economic benefits are
expected to flow to the enterprise (IASB, 1998, para. 2).
At the international level, and also relevant, are the statements produced by the
North American FASB and, in particular relation to the aims of the present study,
Statement Financial Accounting Standard No. 142 (FASB, 2001b) was issued in June,
2001. SFAS No. 142, relative to goodwill and other intangible assets, establishes that
intangible assets are those that, not being financial, lack physical substance. As
opposed to a detailed enumeration of requirements, NIC 38, the North American
pronouncement, is outstanding for its brevity and its broadness of vision.
Focusing on our own country, from the public arena it is necessary to refer to the
position adopted in the General Accounting Plan (PGC) of 1990. The Plan proposes a
series of intangible assets, grouped in the area of intangible fixed assets, and
establishes standards of valuation for these. It provides that an intangible fixed asset is
formed by “intangible wealth assets constituted by rights capable of economic
valuation”. Thus this plan links intangible assets with associated rights of a legal type
that are of any nature that can be valued. The PGC recognizes a series of intangible
assets that can be valued without difficulty, but also excludes certain others, such as,
for example, the geographical location of an entity, the loyalty of its customers, etc.,
whose valuation is complicated and controversial.
In the private sector, of relevance is Document No. 3, produced by the Spanish
Association of Accounting and Business Administration (AECA, 1991), which refers to
JIC
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