Abstract:The paper examines growing importance of intangible assets and its role in the process of value creation. Taking into consideration that intangible assets are defined and categorized in different ways...The paper examines growing importance of intangible assets and its role in the process of value creation. Taking into consideration that intangible assets are defined and categorized in different ways, the discussion commences with indicating various definitions and types of intangible assets. Given that demands for measuring intangible assets and their reporting are becoming increasingly pronounced in financial reports, a section of the work is devoted to this particular issue. Intangible assets (as a total and as divided into individual components) are viewed and valued from the stand point of their contribution to strategy implementation - that is, the level of intangible assets value comprises of overall strategy contribution to the value in the future. This is followed by the analysis of the significant role intangible assets play in value increment. Useful indicator of intangible assets potency is resembled in noticeable discrepancy that exists between market and book value of a company. In this section of the paper, human capital is analyzed particularly as a component of intangible assets whose most significant substance comprises of knowledge. Considering that strategy represents the most important planning decision through whose utilization intangible assets bring about tangible outcomes, the paper concludes by scrutinizing relationship between strategy and intangible assets. Different perspectives from Balance Scorecard - which represents a tool for formulating and implementing strategy - are being matched with corresponding types of intangible assets.Read More
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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Cited By Count: 4
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