| INTANGIBLE ASSETS AND BALANCE SHEET STRENGTH Audra Ong Issue 27 (Vol. 14, No. 1), June 2004, pp. 21-40. There has been considerable debate on international accounting convergence but little evidence exists regarding the impact on individual companies. Supporting this convergence is the contention, exemplified by UK experience, that companies have used deficiencies in accounting regulations to strengthen their balance sheets. This paper explores company practices in intangible asset accounting when regulations were permissive. It also seeks to establish whether there is a statistical relationship between capitalisation policy and corporate gearing. An analysis of company practices in the UK shows that company responses are differentiated. Examples of accounting policies suggest that specific conditions can influence the way in which companies choose to implement new regulations. |