Open AccessContemporary financial reporting and intangible resources: Implications for corporate governance
Author(s) -
Hugh Grove,
Maclyn Clouse
Publication year - 2019
Language(s) - English
Resource type - Conference proceedings
DOI - 10.22495/ncpr_13
Subject(s) - intangible asset , corporate governance , business , product (mathematics) , value (mathematics) , accounting , asset (computer security) , loyalty , earnings , business operations , quality (philosophy) , finance , marketing , philosophy , geometry , mathematics , computer security , epistemology , machine learning , computer science
The key question of this paper is what are the implications for corporate governance from the emergence of contemporary financial reporting and intangible resources? Going beyond traditional financial reporting, Boards of Directors and corporate executives should investigate the intangible resources for contemporary financial reporting, because this resources (like global brand names, global licensing, customer loyalty, product quality, and product innovation) can causing huge price to earnings ratio gaps and the huge market to book ratio gaps for their companies. This paper has analyzed issues of asset value migration to intangibles, five major future business value drivers (all intangibles), forward-looking measures for intangible resources, market gaps for “old economy” versus “new economy” companies (all driven by intangibles), hidden intangible values made visible, international views on contemporary financial reporting, and conclusions