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Mauro Gatti's Discussions
The many values of intangible assets
Started this discussion. Last reply by Mauro Gatti Feb 18, 2011. 6 Replies 0 Likes
Assets are by definition valuable resources and they do matter only insofar as they have value. Regardless we are interested in a qualitative assessment (e.g., whether the resource is valuable or…Continue
Tags: cost, strategic, use, historical, exchange
Intangibility scaling
Started this discussion. Last reply by Jayaraman Rajah Iyer Nov 8, 2010. 5 Replies 0 Likes
I have just updated my web site page on intangible asset definition by providing a short discussion on "intangibility scaling". Hereunder is a small excerpt.Assigning a measurement of intangibility…Continue
Tags: measurement, control, intangibles, intangibility, asset
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Mauro Gatti replied to Mauro Gatti's discussion The many values of intangible assets"Hi Matt,
thank you very much for highlighting the importance of fair market value. You have explained effectively the relevance of exchange value in various contexts (e.g., liquidation).
There are two main comments I want to make to…"
Matt Evans replied to Mauro Gatti's discussion The many values of intangible assets"Value to people in finance (such as myself) usually equates to Fair Market Value – how much can you realize by selling something. So the question that finance asks over and over again is how much is something worth? The goal is to maximize the…"
Gordon McConnachie replied to Mauro Gatti's discussion The many values of intangible assets"The concept of assessing the value of intangibles is not new: in fact it has its roots in Japan in the 1960s. In 2005 the VMRC (Value Measurement and Reporting Collaborative) identified over 80 methods for placing a value on intangibles. In most…"
Thomas Mathiasen replied to Mauro Gatti's discussion The many values of intangible assets"Hi Mauro
I agree, that this topic alone could lead to a long and detailed discussion, leading away from your original 4 points in your post, so I´ll let it be. Just with my last remark, that ownership alone of a tangible does not…"
Mauro Gatti replied to Mauro Gatti's discussion The many values of intangible assets"Hi Thomas,
this was discussed in another post on this web site Intangibles scaling See also
Intangibles Overview for further details on intangibles scaling.
Control is one of the fundamental dimensions according to…"
Thomas Mathiasen replied to Mauro Gatti's discussion The many values of intangible assets"I have no comments to the 4 values; however, I do not understand why a high degree of intangibility could be compared to a low control of the asset? I guess that on could argue that a bunch of highly skilled employees could be difficult to keep…"
Mauro Gatti posted a discussionThe many values of intangible assets
Assets are by definition valuable resources and they do matter only insofar as they have value. Regardless we are interested in a qualitative assessment (e.g., whether the resource is valuable or not); or a quantitative assessment (e.g., assigning an absolute number to the value of the asset); it is of primary importance to clarify the meaning of the term value. Borrowing concepts from economic theory I have highlighted in…See More
Jayaraman Rajah Iyer replied to Mauro Gatti's discussion Intangibility scaling"Agreed. Leanord Nakamura mentions a figure of more than $1 trillion. Balance Sheet inclusion provides the right perspective of the risks involved that otherwise let the expenses go beyond one's capability to absorb. Capitalization is also only…"
ICountantMary Adams replied to Mauro Gatti's discussion Intangibility scaling
"Jayaraman- At this point, I try to ignore the question of capitalization and focus on the question of what is being spent on intangibles that will have a value beyond one year (the basic definition of investment vs. expense). I recommend that…"
Jayaraman Rajah Iyer replied to Mauro Gatti's discussion Intangibility scaling"Thanks to Mauro to raise the question of Intangibility of the asset, that I see as the primary focus for Measurability. Taking note of Mary's comment 'that intangibility as a stand-alone metric could be dangerous' and Peter's…"
Peter Spence replied to Mauro Gatti's discussion Intangibility scaling"Mary,
I agree with the rationale of expensing intangible investment annually but find myself questioning the thought that much of the investment will never be eligible for capitalization. It appears that the volatile nature of IC (like say the…"
ICountantMary Adams replied to Mauro Gatti's discussion Intangibility scaling
"Mauro- My first reaction to this was why bother measuring how intangible something is. But reading the article in your link, I understand that you are linking intangibles with accounting criteria and I like any effort that tries to bridge IC and…"
Mauro Gatti posted a discussionIntangibility scaling
I have just updated my web site page on intangible asset definition by providing a short discussion on "intangibility scaling". Hereunder is a small excerpt.Assigning a measurement of intangibility to an intangible with respect to one criterion (e.g., identifialibility) means to scale the asset according to this criterion. Typically that does not mean to assign a numeric absolute value (a ratio scale) like for instance the monetary value. Most often all that we can do is to assign a ordinal…See More
Mauro Gatti replied to Mary Adams's discussion Need help cataloging different business perspectives on intangibles"A short comment about Human Capital category
I think one the most important items missing in your list is the category of "motivation systems". That includes both extrinsic motivation systems (e.g., incentive systems used for…"
Mauro Gatti replied to Mary Adams's discussion Need help cataloging different business perspectives on intangibles"A short comment to one of your categories
Business processes can be part of the "structural" or "relationship" capital depending on the whether they are internal or external. Those that seem more valuable in the sense that they…"
Profile Information
- What is your interest in smarter companies?
- IC is an important component of the intangible capital of firms. I am highly interested in the intangible firms, namely those in which the intangible capital plays a key, strategic role.
I led an IBM internal study on intangible firms whose results we have recently started to publish on the web (see http://www.itdec.eu/Intangibles_Overview.html).
Comment Wall (1 comment)
- At 5:18pm on May 8, 2010,
Doug McDavid said… - Sure, it is nice to see our work lives on. I lost track of it at a certain point, and then IBM (not so) politely asked me to move on.
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