This book asserts that intangibles create financial transactions, not vice versa. It offers distinct, reproducible methods of valuing intangibles in intangible forms, with associated and meaningful financial values. It also presents new management frameworks in which all forms of intangibles can be classified, measured, managed, and reported.
A practical, hands-on guide to a new approach to valuing intangibles Progresses from simple to complex, using case studies that begin with short simple cases and progress to comprehensive real-life case studies *Highlights the distinction between what is currently required by law and what is not required but will give firms a competitive edge
Financial Managers, students in MBA finance programs.
PREFACE 2 DEDICATION 2 ACKNOWLEDGEMENTS 3 TERMS & DISCLAIMERS 3 CHAPTER 1: UPGRADING FUNDAMENTAL ANALYSIS 11 CHAPTER 2: COMPETITIVE ADVANTAGE VALUATION 15 Stock Prices Measure Competitive Advantage 15 Understanding Price Fluctuations 15 Competitive Advantage Costs 16 Competitive Costs 17 Competitive Costs: Not Wage Costs 17 Benefiting from Flawed Valuation Approaches 19 Exploiting Flawed Management Thinking 20 Hard vs. Soft Intangibles 20 Different Resource Types 21 Explaining resource levels 22 The Understood Importance of Intangibles 23 Robust Intangible Valuation Systems 23 Brand as an intangible 24 Robust Intangible Management Systems 26 15 Key-Issues Ignored 26 17 Problematic Valuation Issues 27 Issue #1: Strategy Based (intMgtOS®6001.I05) 27 Issue #2: Incorrect formation (intMgtOS®6001.I1)28 Issue #3: Comparability (intMgtOS®6001.I2) 28 Issue #4: Underlying Component Changes (intMgtOS®6001.I3) 28 Issue #5: Strategy Linked (intMgtOS®6001.I4) 29 Issue #6: Limited Scope (intMgtOS®6001.I5) 29 Issue #7: Ownership Based (intMgtOS®6001.I6) 29 Issue #8: Wage Costs as a Proxy (intMgtOS®6001.I7 29 Issue #9: Productivity not linked to Brand (intMgtOS®6001.I8) 30 Issue #10: Expense Productivity Ignored (intMgtOS®6001.I9) 30 Issue #11: Revenue Potential Ignored (intMgtOS®6001.I10) 30 Issue #12: Employee Motivation Ignored (intMgtOS®6001.I11) 31 Issue #13: Daily Brand Value (intMgtOS®6001.I12) 32 Issue #14: Competitive Advantage Ignored (intMgtOS®6001.I13) 34 Issue #15: Daily Competitive Advantage Valuation (int
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- © Academic Press 2005
- 7th June 2005
- Academic Press
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"Dr Standfield's work is thorough, systematic and integrative. It synthesizes an innovative methodology which aims to solve a fundamental issue in the knowledge era related to valuation. Dr Standfield has been a leading light in the fields of knowledge management, intellectual capital, and intangible management for many years. The work he has presented pushes the envelope beyond what any other practitioner, or researcher, in these fields has been able to develop." -- Nick Bontis, PhD. Professor of Knowledge Management, McMaster University, Director, Institute for Intellectual Capital Research Inc. Canada. "There has been a substantial amount of 'accounting bashing' in the literature on intangibles and intellectual capital. Here, for the first time, is a comprehensive set of standards that link actual operational activities to actual accounting results as expressed in conventional financial statements - a complementary system to traditional financial reporting. The result is the long awaited system, underpinned by standards, that allows accounting performance to be explained by the value drivers (intangibles) that creates it." -- Per Nikolaj Bukh PhD, BDO Professor, Department of Accounting, The Aarhus School of Business, Denmark "Dr Standfield is the new Management genius of our time and will be as profound to management science as Einstein was to Physics." -- Wayne Larkin, Chairman, of Technology Information Management Marketing Services, Sydney, Australia "Dr. Ken Standfield has once again added to the eminent need for a new mapping measurement and accounting standards of intangibles. Intangible Finance Standards is an impressive work full of valuable distinctions, details and strategic directions to overcome the today'