The role of accounting in high-technology investments

Julia A. Smith (Lead / Corresponding author), Renzo Cordina

    Research output: Contribution to journalArticle

    5 Citations (Scopus)

    Abstract

    We present new qualitative empirical evidence from a series of interviews with representatives of venture capital support organisations, which discusses the role of accounting in high-technology investments. Our discussion is framed around three propositions on: whether or not the stewardship role of accounting still holds; the usefulness, or otherwise, of accounting information in the valuation of high-technology investments; and assessing the value of intangible assets in the investment decision. We find that accounting no longer plays such a strong stewardship role, certainly for the venture capital investor. Further, its role in enabling investors to make decisions on how, when and how much to invest is limited. We propose that standard setters take this on board in revising reporting requirements.
    Original languageEnglish
    Pages (from-to)309-322
    JournalBritish Accounting Review
    Volume46
    Issue number3
    Early online date26 Mar 2014
    DOIs
    Publication statusPublished - Sep 2014

    Fingerprint

    Investors
    High technology
    Stewardship
    Technology investment
    Venture capital
    Accounting information
    Empirical evidence
    Investment decision
    Intangible assets
    Usefulness

    Keywords

    • high technology ventures
    • Accounting
    • stewardship accounting
    • high technology investments

    Cite this

    @article{e93c987a5d22491291aa820cd44a5f77,
    title = "The role of accounting in high-technology investments",
    abstract = "We present new qualitative empirical evidence from a series of interviews with representatives of venture capital support organisations, which discusses the role of accounting in high-technology investments. Our discussion is framed around three propositions on: whether or not the stewardship role of accounting still holds; the usefulness, or otherwise, of accounting information in the valuation of high-technology investments; and assessing the value of intangible assets in the investment decision. We find that accounting no longer plays such a strong stewardship role, certainly for the venture capital investor. Further, its role in enabling investors to make decisions on how, when and how much to invest is limited. We propose that standard setters take this on board in revising reporting requirements.",
    keywords = "high technology ventures, Accounting, stewardship accounting, high technology investments",
    author = "Smith, {Julia A.} and Renzo Cordina",
    year = "2014",
    month = "9",
    doi = "10.1016/j.bar.2014.03.002",
    language = "English",
    volume = "46",
    pages = "309--322",
    journal = "British Accounting Review",
    issn = "0890-8389",
    publisher = "Elsevier",
    number = "3",

    }

    The role of accounting in high-technology investments. / Smith, Julia A. (Lead / Corresponding author); Cordina, Renzo.

    In: British Accounting Review, Vol. 46, No. 3, 09.2014, p. 309-322.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - The role of accounting in high-technology investments

    AU - Smith, Julia A.

    AU - Cordina, Renzo

    PY - 2014/9

    Y1 - 2014/9

    N2 - We present new qualitative empirical evidence from a series of interviews with representatives of venture capital support organisations, which discusses the role of accounting in high-technology investments. Our discussion is framed around three propositions on: whether or not the stewardship role of accounting still holds; the usefulness, or otherwise, of accounting information in the valuation of high-technology investments; and assessing the value of intangible assets in the investment decision. We find that accounting no longer plays such a strong stewardship role, certainly for the venture capital investor. Further, its role in enabling investors to make decisions on how, when and how much to invest is limited. We propose that standard setters take this on board in revising reporting requirements.

    AB - We present new qualitative empirical evidence from a series of interviews with representatives of venture capital support organisations, which discusses the role of accounting in high-technology investments. Our discussion is framed around three propositions on: whether or not the stewardship role of accounting still holds; the usefulness, or otherwise, of accounting information in the valuation of high-technology investments; and assessing the value of intangible assets in the investment decision. We find that accounting no longer plays such a strong stewardship role, certainly for the venture capital investor. Further, its role in enabling investors to make decisions on how, when and how much to invest is limited. We propose that standard setters take this on board in revising reporting requirements.

    KW - high technology ventures

    KW - Accounting

    KW - stewardship accounting

    KW - high technology investments

    U2 - 10.1016/j.bar.2014.03.002

    DO - 10.1016/j.bar.2014.03.002

    M3 - Article

    VL - 46

    SP - 309

    EP - 322

    JO - British Accounting Review

    JF - British Accounting Review

    SN - 0890-8389

    IS - 3

    ER -