Agency Assurance - Universität St.Gallen

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8.2 Agency Assurance in the Knowledge Management Context 166
8.3 Classification: A Knowledge Management Basis 167
8.3.1 Knowledge and Differentiation Costs 167
8.3.2 Knowledge and its Forms Defined 168
8.3.3 The Contribution from the Maturing Field of Knowledge
Management
169
8.4 Intellectual Capital Basis for Accounting Recognition of Intangibles 174
8.4.1 The Distraction of Market Value Approaches 174
8.4.2 The Justification for Historical Cost Capitalization versus
Expensing of Intangible Assets
8.4.3 The Conservatism Concept and Disclosure Principle in Reliable
Balance
177
183
8.5 Knowledge Disclosure Benefits Both Control and Collaboration 188
9 Classification as a Principles Based Approach 191
9.1 The Audit Committee and Active Involvement in Accounting Standards 191
9.2 Oversight of Self-Regulation and Reform in the Accounting Industry 192
9.2.1 Principles Leading the Standards Process 192
9.2.2 A Process for Recognition and Valuation of Intellectual Property 193
9.3 Classification Standards for Internal Intangibles 196
9.3.1 Overview of the Proposed Accounting Principle for
Differentiation Costs
196
9.3.2 Capitalization Standards for Intangible Assets 196
9.3.3 Critique of the Process of Capitalization for Intangibles 198
9.3.4 Scheduled Amortization and Impairment Review as Risk
Limiters
201
9.4 Classification of Differentiation Costs in Relation to Transaction Costs 202