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subject: Intangible Assets Provide Real Value To Stocks. [print this page]

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

.

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

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