García-García, Jesús and Alonso de Magdaleno, María Isabel (2010): Fair value on commons-based intellectual property assets: Lessons of an estimation over Linux kernel.
Download (287kB) | Preview
Open source describes practices in production and development that promote access to the end product's source materials, spreading development burden amongst individuals and companies. This model has resulted in a large and efficient ecosystem and unheralded software innovation, freely available to society. Open source methods are also increasingly being applied in other fields of endeavour, such as biotechnology or cultural production. But under financial reporting framework, general volunteer activity is not reflected on financial statements. As a result, there is not value of volunteer contributions and there is also no single source for cost estimates of how much it has taken to develop an open source technology. This volunteer activity encloses not only individuals but corporations developing and contributing open source products. Standard methodology for reporting open source asset valuation is needed and must include value creation from the perspective of the different stakeholders.
|Item Type:||MPRA Paper|
|Original Title:||Fair value on commons-based intellectual property assets: Lessons of an estimation over Linux kernel.|
|Keywords:||FLOSS, commons, accounting standards, financial reporting|
|Subjects:||M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M14 - Corporate Culture ; Diversity ; Social Responsibility
G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing
|Depositing User:||Jesús García-García|
|Date Deposited:||08. Jul 2010 19:42|
|Last Modified:||30. Dec 2015 22:31|
Aboody D. and B. Lev (1998). The Value Relevance of Intangibles: The Case of Software Capitalization. Journal of Accounting Research, Vol. 36, Supplement, pp. 161-191.
Amor-Iglesias, J.J.; J.M. González-Barahona; G. Robles-Martínez and I. Herráiz-Tabernero (2005). “Measuring Libre Software Using Debian 3.1 (Sarge) as a Case Study: Preliminary Results”. UPGRADE The European Journal for the Informatics Professional, vol. VI, n. 3, pp. 13-16.
Anagnostopoulou, S.C. (2008). R&D expenses an firm valuation: a literature review. International Journal of Accounting and Information Management, 16 (1), pp. 5-24.
Asundi, J. (2005). “The need for Effort Estimation Models for Open Source Software Projects”. Fifth Workshop on Open Source Software Engineering (5-WOSSE), May, St Louis, MO, USA.
Barth, M.E., M.B. Clement, G. Foster and R. Kasznik (1998). Brand Values and Capital Market Valuation. Review of Accounting Studies, Vol. 3, pp. 49-68.
Boehm, B.W. (1981). Software Engineering Economics, Prentice Hall.
Brooking, A. (1997). Intellectual Capital. International Thomson Business Press, London.
Chan, S.H, J.D. Martin and J.W. Kessinger (1990). Corporate Research and Development Expenditures and Share Value, Journal of Accounting and Economics, Vol. 26, pp. 255- 276.
Chauvin K.W. and M. Hirschey (1994). Goodwill, Profitability, and Market Value of the Firm. Journal of Accounting and Public Policy, Vol. 13, n. 2, pp. 159-180.
Edvinsson, L. and M.S. Malone (1997). Intellectual Capital. Harper-Collins, New York. Financial Accounting Standards Board (1985). Stament of Financial Accounting Concepts No.6, FASB, Norwalk, CT. <http://www.fasb.org/pdf/con6.pdf>
Ghosh, R.A. (2006). Study on the economic impact of open source software on innovation and the competitiveness of the Information and Communication Technologies (ICT) sector in the EU. Technical report (final version), European Comission & UNU-MERIT, Maastricht, The Netherlands <http://ec.europa.eu/enterprise/sectors/ict/files/2006-11-20-flossimpact_en.pdf>
Givoly, D. and C. Shi (2008), Accounting for software development costs and the cost of capital: Evidence from IPO underpricing in the software industry. Journal of Accounting, Auditing & Finance, 23, pp. 271–303.
González-Barahona, J.M.; M.A. Ortuño, P. De Las Heras, J. Centeno y V. Matellán (2001). "Contando patatas: el tamaño de Debian 2.2", Novática, 154, pp. 30-37.
Gornik-Tomaszewski, S. and M.A. Millan (2005). Accounting for Research and Development Costs: A Comparison of U.S. and International Standards. Review of Business – Saint John's University of New York, 26 (2), 42-47.
Hall, B.H., A. Jaffe and M. Trajtenberg (2005). Market Value and Patent Citations. Rand Journal of Economics, Vol. 36, pp. 16-38.
Hand, J.R.M. (2008). Discussion of "Accounting for Software Development Costs and the Cost of Capital: Evidence from IPO Underpricing in the Software Industry’’. Journal of Accounting, Auditing & Finance, 23, pp. 305-310.
Hanson, B. (1997). Personnel Investments and Abnormal Returns: Knowledge-based Firms and Human Resource, Accounting. Journal of Human Resource, Costing and Accounting, 2 (2), pp. 9-29.
IDC (2009). The Opportunity for Linux in a New Economy. <http://www.linuxfoundation.org/sites/main/files/publications/Linux_in_New_Economy.pdf>
International Accounting Standards Board (1998). IAS 38 Intangible Assets (revision July 1st, 2009), IASB, London.
International Accounting Standards Board (2001). Framework for the preparation and presentation of financial statements, IASB, London.
Koch, S. and Gonzalez-Barahona, J.M. (2005). “Open Source software engineering: The state of research”. First Monday, Special issue n. 2: Open Source, October. <http://firstmonday.org/htbin/cgiwrap/bin/ojs/index.php/fm/issue/view/212>
Lerner, J. and J. Tirole (2002). “Some Simple Economics of Open Source”. Journal of Industrial Economics, 52, p. 197-234.
Lev, B. (2001). Intangibles: Management, Measurement and Reporting. Brookings Institution Press, New York.
Lev, B and T. Sougiannis (1996). The Capitalization, Amortization and Value Relevance of R&D, Journal of Accounting and Economics, Vol. 21, pp. 107-138.
Lev, B. and P. Zarowin (1999). The Boundaries of Financial Reporting and How to Extend Them, Journal of Accounting Research, Vol. 37. n. 3, pp. 353-386.
Linux Foundation (2008). Estimating the Total Development Cost of a Linux Distribution. <http://www.linuxfoundation.org/publications/estimatinglinux.php>
Linux Foundation (2009). Linux Kernel Development. How Fast It is Going, Who is Doing It, What They are Doing, and Who is Sponsoring It: An August 2009 Update. <http://www.linuxfoundation.org/publications/whowriteslinux.pdf>
Mohd, E. (2005). Accounting for Software Development Costs and Information Asymmetry. The Accounting Review, Vol. 80, pp. 1211-1231.
Picci, L. (2006), "Bad design by design: economics meets other types of interactions,”. In Foundations of Interaction Design, S. Bagnara and G.C. Smith (eds), Lawrence Erlbaum Associates, New York.
Riehle, D. (2010). The Economic Case for Open Source Foundations. IEEE Computer, vol. 43 (1), pp. 86-90.
Shi, C. (2003). On the Trade-off Between the Future Benefits and Riskiness of R&D: A Bondholders’ Perspective, Journal of Accounting and Economics, Vol. 35, n. 2, pp. 227-254.
Sougiannis, T. (1994). The Accounting Based Valuation of Corporate R&D, The Accounting Review, Vol. 69, n. 1, pp. 44-68.
Stewart, T.A. (1997). Intellectual Capital. Doubleday, New York.
Wheeler, D. A. (2001). More than a Gigabuck: Estimating GNU/Linux's size. <http://www.dwheeler.com/sloc/redhat71-v1/redhat71sloc.html>
Wheeler, D.A. (2004). Linux kernel 2.6: It's worth more! <http://www.dwheeler.com/essays/linux-kernel-cost.html>