Institute of Management Accountants Event: Intangible Capital, the real value of a business
January 19, 2012 by Mary Adams
The NH Chapter of the Institute of Management Accountants is hosting Trek principals, Mary Adams and Michael Oleksak, at their February meeting.
From the event announcement:
Did you know that a balance sheet presented under U.S. generally accepted accounting principles can only explain 20% of the value of the average company? The rest is lumped together as “intangible.” Very little is known or understood about this hidden 80% of value, yet this information gap affects the ability of management teams everywhere to make the right decisions and drive growth performance, as well determine the true value of their company.
These intangibles reflect the shift of companies toward greater dependence on knowledge. These “unrecognized” intangibles include a broad range of capabilities and “assets” such as data, networks and processes that together make up the fundamental infrastructure of the modern business.
Management accountants have a unique opportunity to unlock the secrets of this hidden 80% of corporate value. This presentation will explain how you, as a management accountant, can be a valued partner to your fellow managers and peers in identifying, measuring and monetizing these critical intangibles. We will draw from the recent IMA Statement on Management Accounting entitled Unrecognized Intangibles: Identification, Management and Reporting and the book Intangible Capital: Putting Knowledge to Work in the 21st Century Organization, both co-authored by our speakers, Mary Adams and Michael Oleksak.
More information and registration
Is there a registration fee for this one?
Yes, you can get info about the registration here
Very informative blog you have shared with us. I really enjoy read this information. Thanks for sharing it with us.
Accountants like myself know how to value natural resources on the balance sheet BUT we don’t place an asset value on human resources. A person in Hong Kong told me this month that the Chinese are very interested in defining a reliable method to value an organization’s employees. Does the book Intangible Capital show how to do that?
Yes, there are a lot of thoughts about valuation and measurement in the book but maybe not what you expect.
The message of Intangible Capital is that you have to look at the whole knowledge system including human, relationship, structural and strategic capital–valuing human capital or any other intangible in isolation isn’t that helpful.
Also, the valuation question isn’t that helpful for management teams. More relevant are questions like: How much does it cost to acquire, build and maintain an asset (including human capital)? How can we best measure the performance of this asset. Howdoes this one element contribute to the overall performance of the whole group or company?