Good spot Jay or they have 'embraced' IA with placing them under "capital" (smile)
These concepts (financial, information, capital and value) are all still critically important and will continue to be forever or at least for a long time. Our economy relies on cash.
What we need to do is help people see the links between cash value and the intangibles that drive them. It starts on the outflow side. People, process, networks (think customers and supply chains), brands make up the majority of the expense base of today's enterprise. Accounting isn't equipped to measure operating versus capital expenses so it's hard to see the intangible infrastructure that has been built over decades across our economy (it's always been there but it grew astronomically once PC's empowered individuals).
It's this infrastructure that drives revenues, profits, innovation, valuation and reputation. We try to help people see these links through the ICounts Canvas.
The disconnect between accounting and intangibles is the reason we are advocating a parallel system called ICounting--to help see these assets, measure them and manage them more effectively. A huge function of our movement and this community is to try to help people connect the dots between financial, information, capital, value and intangibles.
Then just stop and look at the largest mentions. The current acceptance of "financial, information, capital and value"- these might not be linked here but they are linked in the brain of the C-level person, how can we break this thinking chain?
Yes it is sad and slightly worrying both intangibles, even assets and more importantly people or employees are simply missing. I can hear those famous defensive statements "Oh, of course, it goes without saying" Welcome to the world of intangibles, if you don't focus in on it, it will not be measured, appreciated or valued.
I guess that with intangibles I was covering all the bases. And they're all inter-related. But the core is people...
Mary, that is one of the missing words, any others.......hint...our best assets?
Can anyone make a guess at what seems to be missing?
Value Creation Worksheet
The U.S. Integrated Reporting Journey
Accounting, ESG, and the Intangible Information Gap
A Practical Approach to Closing the Intangible Information Gap
Systems Thinking Using a Multi-Capital Model
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