1 THE RELATIONSHIP BETWEEN INTANGIBLE ASSETS AND FIRM VALUE Inaliah Mohd Ali 1 Norfhadzilahwati Abd Rahim 2 Shahrul Suhaimi Abd Shukor 3 Hafiz Majdi Abd Rashid 4 The intangibles of the modern business—intellectual property and knowledge assets, brands, human capital are the company’s valuable assets. This paper examines the value relevance of intangible assets disclosed in the financial statement and the firm value. The issue of value relevance is essential and this paper will assess how well accounting amounts reflect information used by equity investors. It contributes to the study on accounting measurement by suggesting that higher value of intangible assets may lead to higher firm value which provides insights into questions of interest to investors and the standard setters. The samples in this study are chosen from the list of Top 50 most valuable brand companies in Malaysia. Five years data of firm’s market value from the year 2003 to 2007 were collected for the analysing process. This study will use the regression technique in order to review the significant of the relationship between intangible assets and firm market value. Field of Research: Financial Accounting & Capital resources 1. Introduction The issue of value relevance of intangibles non current assets is important in the financial reporting literature due to the ever increasing interest in the components of intangibles assets items including goodwill and intellectual capital (Shukor et. al, 2008). The latest issued IFRS 3 and IFRS 138 have created the need for valuation of intangible assets for financial statement purposes. The standards address only for intangibles acquired in a business combination, but the question raise of what values remain hidden within intangibles developed internally. Given that adoption of IFRS, it is important for investors and stakeholders to understand the association between accounting numbers prepared using the current accounting standards and equity value. This will help the stakeholders to estimate the value of equity after adoption of IFRS. * 1,2and3 Universiti Tenaga Nasional; 4, International Islamic University Malaysia, Malaysia. Email: 1 inaliah@uniten.edu.my , 2 sshahrul@uniten.edu.my , 3 norfhadzilah@uniten.edu.my , 4 hafizmajdi@gmail.com