A staggering proportion of enterprise value does not depend on current operations, but rather on expectations concerning growth opportunities-what Accenture calls future value. Much of that future value depends, in turn, not on the resources (assets) that traditional accounting practice handles well-i.e. the monetary and physical assets-but on the resources it hardly handles at all-such as, intangible and intellectual capital. Many of the most successful … [ Read more ]
Content: Article | Authors: Göran Roos, John J. Ballow, Michael J. Molnar, Roland Burgman | Source: Accenture | Subjects: Finance, Strategy
Nearly 60 percent of the aggregate value of the US stock market is based on investor expectations of future growth. And because this future value tends to be concentrated in industries and companies that are built on intangible assets, it is critical to find better ways to recognize, report and manage these assets.
Content: Article | Authors: Göran Roos, John J. Ballow, Robert J. Thomas | Source: Outlook Journal (Accenture) | Subjects: Accounting, Economics