Gary Ross, chairman of Intellectual Capital Services, said companies ‘chasing competitive advantage’ were beginning to embrace the intellectual capital process.
He said the gap between the replacement cost of a company’s balance sheet and the market valuation continued to widen and estimated that between 45% and 75% of the average company’s value was related to cash. The remainder is made up of the company’s intellectual capital, or ‘equitisation intangible assets’ – its ideas, people, processes and relationships.
Value accounting should be able to provide a reliable explanation of what lies beneath the market valuation in terms of the contributory intellectual capital, Ross said.
In response, Christopher Jackson, head of the ICAEW’s Finance and Management faculty, said the institute recognised the importance of ‘measuring and managing intangible assets’ adding that many members were already involved in these processes.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.