Research On The Recognition, Measurement And Correlation With Operation Performance Of Intangible Assets In China's Publishing And Media Companies

Due to the market climate and policy influence, the Publishing and Media Industry in China is undergoing a favourable situation, with both the internal competition and external investment bound to be more active. As a key element of the creation of value in knowledge economy, Intangible Assets are of extraordinary effect on the Operation Performance of Publishing and Media companies. In order to arouse the awareness of Intangible Assets, it is required to verify the correlation between Intangible Assets and Operation Performance. In the meantime, the accounting recognition and measurement of Intangible Assets have an impact on the valuation and management of Intangible Assets, as well as on the valuation by investors.This paper firstly carried out theoretical analysis on the correlation between Intangible Assets and Operation Performance, based on the summarization of previous researches and current Accounting Standards. Data from Chinese listed Publishing and Media companies was processed for descriptive statistics, stating the scale and proportion of Intangible Assets in these companies. Then empirical study was carried out to verify the correlation between the scale of Intangible Assets and Operation Performance. The results are as follows:the proportion of Intangible Assets in Publishing and Media Industry is significantly higher than the average of all industries; the scale of Intangible Assets in this industry is significantly correlated to companies' Operation Performance, and the significance is greater than that of other assets. On confirming this, the paper investigated the status of the accounting recognition, measurement and disclosure of Intangible Assets in Publishing and Media companies in China. By this and also by comparing to high profile overseas companies, this paper concluded the drawbacks in Chinese companies, such as failing to implement the new Accounting Standards, the narrowness of recognition system as well as lack of effective measuring methods. Practical suggestions were put forward at the end of this paper, aiming at solving current drawbacks and improving the accounting and management of Intangible Assets in Publishing and Media companies.