Intangible Capital Expenditure

10468398667?profile=originalThis paper is an excerpt from Intangible Capital: Putting Knowledge to Work in the 21st Century Organization being re-released for readers from the integrated reporting movement.

It will challenge you to consider how to apply a well-known accounting convention, capital expenditure, to today’s companies. Lack of this kind of approach for modern assets like data, systems, knowledge and networks is a big driver of the 87% intangible information gap between corporate value and the tangible net worth of the average public company in the U.S.

You’ll learn:

  • Why intangibles aren’t on the balance sheet today
  • The consequences of the intangible information gap
  • How accounting data can be used to close the intangible information gap
  • How intangibles relate to questions of value and valuation

This paper does not suggest changes in GAAP. Rather, it provides a simple framework for a management accounting report that can be produced by companies of every size.


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