Intangible Assets Provide Real Value To Stocks.
Intangible Assets Provide Real Value
To Stocks.
Any business professor will tell you that the value of companies has been
shifting markedly from tangible assets, "bricks and mortar", to intangible
assets like intellectual capital. These invisible assets are the key drivers of
shareholder value in the knowledge economy, stock tips,
but accounting rules do not acknowledge this shift in the valuation of
companies. Statements prepared under generally accepted accounting principles do
not record these assets. Left in the dark, investors must rely largely on
guesswork to judge the accuracy of a company's value. While intangible assets
don't have the obvious physical value of a factory or equipment, they are not
insignificant stock market tips, they
can prove very valuable for a firm and can be critical to its long-term success
or failure. In the corporate world, companies possess many different tangible
assets with real marketplace value. Real office equipment, office furniture,
computers, cash, and accounts receivable are assets that,
share tips , can be exchanged in or used to pay debts
Share:.
Assets like these normally carry established market
trader, which vary depending on
different economic and geographic factors. These kinds of assets are relatively
easy to quantify and include on financial reports. However, stock market tips,
are only part of the total picture. Companies also possess vast arrays of
intangible assets. Intangible assets have real vale and are very important to a
company's success, but are much harder to measure and quantify than their
tangible counterparts. Knowledge-based, intangible assets are sometimes referred
to as intellectual capital. Although they may not be visible to the naked eye
the same way tangible assets are,
stock trading tips, it is important
for companies to take stock of the intangible assets they have and find ways to
capture and preserve them. As information and knowledge play increasingly
prominent roles in the business world,
operator trading tips, identifying
and managing intangible assets become issues that physical retailers like Home
Depot must deal with, as must companies doing business exclusively online.
According to Investor Relations Business,
trading strategies Upton of the
Financial Accounting Standards Board indicated this was a challenge for all
companies, regardless of size. "The issue of intangible assets is just as
important for a company like Pfizer Corp. as it is for a start-up, although
Pfizer may do a better job," his explained. One of the reasons intangible assets
are so important is because they can be converted to tangible assets, ultimately
generating revenue. Books,
insider trading stock, software
products, equipment, patents, and inventions are prime examples. Intangible
assets also are of considerable interest to investors. In the past,
trading tips a company's book value often was closely associated with
its market value. Despite the importance of intangible assets to both companies
and their investors, they remained difficult to define, recognize, and measure
in the early and uniform standards for doing so did not exist. The information
was not being disclosed to investors and analysts along with other, more easily
quantifiable assets, presented serious problems. After all,
operator share tips it made it more difficult for investors to make
sound decisions in the absence of such information. Because of these concerns,share
tips professionals in the fields of academia and accounting were
seeking to alter the ways companies measured performance and value. By proposing
new methods,
stock trading they acted as change
agents, operator stock trading tips
challenging established principles that no longer met the information needs of
the business community.
by: shimran