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Intangible assets


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Intangible assets

  1. 1. Intangible Assets ---by Massi & Cady
  2. 2. Outline  Introduction of the topic  Summary of articles  Discussion  Conclusion  Question time
  3. 3. Introduction of the topic Intangible assets--assets do not have to be in physical form. An intangible asset is a non-monetary asset without physical substance. (According to the textbook) E.g.: trademark, brad name, patents, rights, agreements, development expenditure, mastheads and licenses.
  4. 4. Summary of the articles  Intangible Assets Stuart Whitwell)  The importance  The adverse effects six points)  Intangible Assets Mathew Schwartz ,2000)  Role’s changing of intangible assets  Measurement  Examples to illustrate its effect on overall performance of a company
  5. 5. Discussion--definition  Assets do not have to be in physical form. An intangible asset is a non-monetary asset without physical substance.  Intangible assets represent an attempt to reconcile the difference between the value of the assets a company counts on its books and the value the stock market assigns it.
  6. 6. Discussion--importance  Lower market return  Low sale price  Poor planning  Poor performance delivery  Poor resource direction  Loss of investor confidence
  7. 7. Low market return -undervalued asset -flabby and inefficient business Low sale price -under-utilize the brand -sell for less than it’s worth -ownership’s changing -brand’s renaming
  8. 8. Poor planning -unrealistic target -knock-on effect Poor performance delivery -weakens commercial application
  9. 9. Poor resource direction -constant investment -misjudge the correct amount of investment Loss of investor confidence -affect shareholder’s faith in the company -share price and extra assets
  10. 10. Discussion-measurance  Dell Computer Corp.  Has a superior logistical supply chain and a superior ability to get people to the Web site to order  Compad Computer Corp.  Has much higher revenue than Dell, but it isn’t as highly valued in the market
  11. 11. Microsoft Corp.  “The amount of knowledge they have generated has got to be a primary asset —it’s in people’s heads there," says Larcker.  Superior hiring practices
  12. 12.  They are worth far more than the physical and financial assets.  Their worth differs for different people.  IT system
  13. 13. Conclusion  It is necessary to estimate the intangible assets correctly.  Evaluating the intangibles assets correctly and efficiently is a long term project for companies and organizations
  14. 14. Question  Please judge which of the followings are intangible assets -employer’s salary for this month -the brand image of the company -the building owned by the firm -company’s license for the project next year