EFRAG Highlights Gaps in Intangible Asset Reporting

Summary

EFRAG intangible asset reporting has been placed under renewed scrutiny following a summary report released by the European Financial Reporting Advisory Group (EFRAG). Based on a series of workshops held in collaboration with the International Accounting Standards Board (IASB), the report highlights gaps in how intangible assets are currently disclosed in financial statements and why these gaps matter for investors and analysts.

Key Highlights

• Investors and analysts are increasingly focused on modern intangible assets such as AI capabilities, data resources, algorithms, and digital platforms.
• Participants called for greater granularity in both narrative disclosures and quantitative data, including better cost disaggregation and clearer capitalisation policies.
• A recurring concern was the disconnect between management commentary and balance sheet recognition, making it difficult to assess how intangibles support business models.
• For digital intangibles, users emphasised the need for clearer disclosures on data usage, AI functionality, and their role in value creation, which are critical for comparability and informed decision-making.

Why It Matters

Much of the information investors rely on today often sits outside financial statements—in investor presentations, earnings calls, or standalone analyses. EFRAG’s findings reinforce the case for bringing more of this information into structured financial reporting. If disclosures already exist elsewhere, making them standardised, machine-readable, and comparable could significantly improve transparency, automation, and analytical insight across markets.

What This Signals

The report points toward growing momentum for enhanced intangible disclosures, potentially supported by sector-agnostic and business-model-specific KPIs. As reporting expectations evolve, organisations will need reporting frameworks and tools that can handle richer, more granular, and digitally structured information.

How Ez-XBRL Helps

Ez-XBRL enables organisations to structure and tag complex disclosures—including narrative and non-traditional data—making them machine-readable, comparable, and audit-ready. As intangible reporting evolves, digital reporting foundations will be critical to meeting future regulatory and investor expectations. Book a Demo