Accounting for Intangible Assets and Its Challenges in the Digital Economy Prepared by: Assistant Lecturer Noor Sabah Hassan Over the past two decades, the global economy has undergone a fundamental transformation toward increasing reliance on knowledge, technology, and data as the primary sources of value creation, rather than the traditional dependence on tangible assets such as factories and machinery. This transformation, commonly referred to as the digital economy, has significantly increased the relative importance of intangible assets, including software, databases, trademarks, intellectual property rights, and human and intellectual capital. However, traditional accounting systems and standards still face significant limitations in keeping pace with the nature of these emerging assets, creating major challenges for accounting professionals and regulators alike. This article aims to review the conceptual framework of intangible assets and analyze the key accounting challenges related to their measurement and disclosure within the context of the digital economy.