Recognizing The Value of Intangible Assets

What are three types of intangible assets?

• Relationship capital – this represents elements of a company's external value, and it includes the following: favorable business relations (customer, supplier, etc.), professional references or affiliations, brand valuation, and company and product image.
• Organizational capital – this represents elements of a company's internal value, and it includes the following: customized processes that are unique to a company, proprietary information and administration systems, and corporate culture.
• Human capital – this is another segment of a company's internal value. It includes the following aspects: the competence, skill, experience, and knowledge of employees; and the potential of skilled employees to create additional assets.

Overview/Description

We operate in an information economy, but current accounting methods are still grounded in the transaction-based economic system of past decades. This Business Impact explores the value of intangible assets in determining a company's worth.

Target Audience

Staff and management working in an accounting, finance or financial services roles including managers, supervisors, accountants, auditors and financial service representatives.