Importance of Reliability of financial statements for intangible assets in the new digital economy - A research case of the relationship between the market value and intangible assets in the light of the financial reporting quality.

Abstract

This work highlights the significance of considering the reliability of financial reporting in conjunction with reporting quality when evaluating a firm's value based on intangible assets. Intangible assets play a crucial role in determining the market value of a company and are subject to high variability. By emphasizing the importance of reliability, this study aims to provide financial users with valuable insights for making informed decisions in the valuation process. Reliability of financial reporting entails the dependability and trustworthiness of the reported data, ensuring that it is free from bias, manipulation, or material misstatements. It provides stakeholders with the confidence that the financial information reflects the true financial position and performance of the company.

In summary, this research underscores the vital role of reliability and quality in financial reporting when evaluating a firm's value while linking it to how intangible assets are being reported. By heeding these factors, financial users can make well-informed decisions, leveraging valuable insights for comprehensive valuation analysis.