This document discusses intangible assets. It begins with an introduction that defines intangible assets as non-physical assets like trademarks, brand names, patents, agreements and licenses. It then summarizes two articles on intangible assets and their importance. The discussion section covers measuring intangible assets using company examples and how intangible assets can impact market returns, sale prices, planning, performance and investor confidence if not properly evaluated. It concludes that correctly estimating intangible assets is important for companies.

1. Intangible Assets
---by Massi & Cady

2. Outline
 Introduction of the topic
 Summary of articles
 Discussion
 Conclusion
 Question time

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.

5. 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

6. 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.

7. Discussion--importance
 Lower market return
 Low sale price
 Poor planning
 Poor performance delivery
 Poor resource direction
 Loss of investor confidence

8. 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

9. Poor planning
-unrealistic target
-knock-on effect
Poor performance delivery
-weakens commercial
application

10. 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

11. 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

12. 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

13.  They are worth far more than the physical
and financial assets.
 Their worth differs for different people.
 IT system

14. 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

15. 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