Changes in accounting standards : implications for marketing in Australia

This paper returns to an issue that received prominence in the mid 1980's to early 1990's, the battle to report the value of marketing assets in corporate financial statements. The reason for this return is the impending change to Australian accounting standards that will see Australian recognition and reporting of intangible assets such as brands, trademarks and other marketing assets, curbed by the acceptance of International Accounting Standards rules of recognition. The implications for marketing as a business function seeking to account for the resources it is charged with expending are examined. Although internal reporting systems will continue to monitor and measure marketing outputs, the required specific accounting treatments will result in biases in external reporting of marketing assets and therefore marketing performance. Reporting of marketing activities to external stakeholders cannot be dismissed as inconsequential, impeding both accountability and legitimacy. Unless other external reporting methods are sought, the changes could impact on expenditures devoted to marketing activities.