ABSTRACT:
Intangible assets — such as reputation, brand value, goodwill, intellectual capital, culture, staff, and strategy — make up between 70% and 85% of corporate market value, yet they go largely unaccounted in financial statements. Dr. Barton gives practical advice on how companies can manage those intangibles as a means of optimizing long-term shareholder value.
EXCERPT:
With a sturdy stride the elephant in the room is taking center stage. Intangible assets have in recent years become the focus of companies, financial analysts, investors, accountants and regulators alike in attempts to understand and narrow the gap between a company's book and market value. For most companies, intangible assets today are a major value driver and account for more than tangible assets; research estimates that between 70% and 85% of all assets are intangible but they go largely unaccounted in financial statements. For example, the balance sheet assets of Coca-Cola or Microsoft account for less than 5% of their total value.
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