ABSTRACT
In many countries, Intangibles/Goodwill accounting standards (e.g. IASB/IFRS and US FASB/GASB standards) are Incentive Mechanisms and have been expressly and or impliedly incorporated into various type of statutes/regulations and thus have the effect of enforceable law. Chapter 7 explains some of the behavioral and Fintech-amplified problems that may arise in the use and enforcement of Intangibles/Goodwill accounting rules and within the context of Financial Stability, Sustainability, earnings management, Systemic Risk, Complex Adaptive Systems and Industry Structure. Chapter 7 introduces economic psychology theories that can explain these foregoing phenomena in addition to Corporate Growth, fraud/misconduct and Non-Compliance. Chapter 7 also explains how the Intangibles/Goodwill accounting regulations can be manipulated to perpetrate Incentive Effects Management and Earnings Management. Thus Intangibles/Goodwill accounting standards should be reformed to reduce managerial discretion, un-necessary market-volatility and distortion-effects of news; to promote Accounting Principles (such as consistency, comparability and transparency), and to reflect the economic realities of transactions.
