Disclosure of Intangible Assets: Are We Getting Better? Evidence from Poland

The purpose of this paper is to examine the compliance level regarding mandatory information about intangible assets reported in financial statements and its change over time. The research method adapted is content analysis of financial statements prepared by all listed IT companies in Poland for accounting years 2012 and 2017. The research tool – disclosure index – comprises all mandatory disclosures about intangible assets (34 items) according to IAS 38. The findings of this paper show moderate level of compliance with only little increase in disclosure level in 2017 comparing to 2012. Entities disclose rather general information without many details needed to deep understanding of intangible value of business. They rewrite information from one year to another and from IAS 38 to the accounting policies without adapting it to their specific. Accounting policy is very often excessively complicated because it includes all possible choices, even though they do not apply to a particular company. It should be a priority to make financial statements more user-friendly and at the same time to create stronger enforcement mechanism (for example during the external audit) to encourage companies to expand their disclosure policies.