Investment in Intangible Assets

In this new era, companies have invested most of their capital in intangible assets, such as companies that emphasize technology and science to create competitive advantage (Goldfigure, 1997). Differences in investment in intangible assets (eg patents, human resources) and investments in tangible assets lie in several aspects related to information asymmetry (Abuja et al., 2005). First, many intangible assets, such as brand name, are unique to each company (not only between different industries but also among companies within the same industry).

Assets can be broadly divided into short-term (or liquid) assets, fixed assets, financial investments, and intangible assets. Assets are recorded on the Company's balance sheet based on the concept of acquisition cost and the acquisition cost represents the initial cost of the asset and is adjusted for improvement or aging. Past costs are also called book value. Current assets are short-term economic resources and are expected to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventories and various prepaid expenses. Cash is worth while the accountant regularly reevaluates the recoverability of inventory and receivables. If there is evidence that there is a possibility that you can not collect accounts receivable, it will be deducted. Or, if the inventory has expired, the company may cancel these assets.

Today, major and major companies in intangible asset management. For example, the Ford Motor Company reduces the investment in intangible assets and the actual benefits of its asset base. Over the past few years I have spent more than $ 12 billion to win the brand's economic value of famous brands such as Jaguar, but the owner is widely accepted now, but its social value is not so clear There is none. Is brand building valuable beyond all values, does it create great social costs? 7, the focus of global brand popularity, dissatisfaction of many global brands. They believe that the homogenization of culture as a brand and other issues, and the development of workers in developing countries are directly related. In addition, the brand is accused of intensifying competition, unfortunate, encouraging monopoly, and limiting consumers from the selection of US and German capitalist systems.