ng routines limits gains from intangible assets Another possibility that should be considered is the role that may be played by the accounting rules regarding the treatment of intangible assets. Under Portuguese accounting rules for intangible assets (Normas contabilísticas e de relato financeiro, NCRF 6—activos intangíveis), the firm can only capitalize expenses related to intangible assets that strictly meet criteria, such as the control of the intangible asset, the existence of an active market for the intangible asset, and the ability to extract future benefits from the intangible asset. As such, failing to meet the criteria will result in an undervaluation of the intangible asset. A number of accounting studies suggest the existence of conservative accounting with regard to intangible
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