Roundtable of Experts Discusses 50-year Rise of Intangible Assets as Dominant Source of Corporate Investment and Equity Market Value Creation
Anup Srivastava of the University of Calgary's Haskayne School of Business articulated the issue this way: "This shift has created an enormous challenge for accounting and financial reporting.
- Anup Srivastava of the University of Calgary's Haskayne School of Business articulated the issue this way: "This shift has created an enormous challenge for accounting and financial reporting.
- US GAAP and the whole related structure of financial reports was created and designed for companies that use physical assets to produce physical products.
- But as companies rely increasingly on intangible assets like the knowledge embodied in pharma R&D pipelines, or corporate brands and employee talent, our financial reporting has become increasingly less effective in capturing the value created by companies."
- And in this sense, our conventional Michael Porter-inspired thinking about what protects our cash flow over sustainable periods of time has changed."