If a hard asset like a machine is somehow impaired, a CFO must reflect the asset’s lower value on the books. The same applies to a contract or piece of software. If customers, on the other hand, suddenly decide they hate doing business with your company, this asset is clearly impaired—but the CFO may not even know about it until too late. And even if the CFO does know, finance has no responsibility to reflect this value change on the books.
Content: Quotation
Authors: Frederick F. Reichheld, Rob Markey
Source: Bain & Company
Subjects: Accounting, Customer Related, Finance
Authors: Frederick F. Reichheld, Rob Markey
Source: Bain & Company
Subjects: Accounting, Customer Related, Finance
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