Where is the Brain Power?

Intangible assets should be valued and put on the balance sheet for better financial reporting.  Displaying intangible assets on the balance sheet would be valuable for two main reasons. First, reporting intangible assets would be more accurate in representing the true economic value of a company. Second, investors would be able to make wiser investment decisions.

            The purpose of financial accounting and reporting is to provide accurate information to help rational people make wise business decisions. Some would estimate that nearly up to half of public companies’ value is tied up in intangible assets, which aren’t currently being reported under U. S. GAAP standards. Reporting intangibles such as brands, human brainpower, and intellectual property would certainly help display the true economic value of a public company. For example, the brainpower of Google employees add to the value of the company, and placing that information on the financial reports would help represent the true value more accurately (Foster, 2006, para. 11).

            The representation of intangible assets would help investors make wiser investment decisions. Having the true economic value to compare to other companies will help in decision making for investors worldwide. Baruch Lev, an accounting professor at New York University, said that current reporting practices “fail to provide adequate guidance to managers, investors, or public policymakers” (Aston, 2002, para. 2).

If we could find a way to accurately and consistently report intangible assets, financial reports would better represent the true economic value of a company and investors would be able to make wiser financial decisions.

References

Aston, A. (2002, August 26). Brainpower on the balance sheet. BusinessWeek, 110-111.

Foster, B. P., Fletcher, R., & Stout, W. D. (2006). Valuing intangible assets. The CPA Journal. Retrieved from http://www.nysscpa.org/cpajournal/2003/1003/
features/f105003.htm

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Let's Get Professional

     Possessing professional characteristics can make the difference between getting hired or being pushed to the side. Three of the most important characteristics include honesty, action-oriented mindset, and passion. No matter the ability or skill set of an employee, if he or she doesn’t possess these qualities, getting hired can become a challenge.

     Honesty builds credibility and high-trust relationships. Being honest in the workplace with co-workers, clients, and oneself is imperative. No manager will want to hire someone who isn’t honest or trusted to complete required tasks. Even after you get hired, honesty is always a requirement for raises and promotions. Building an honest reputation will help you succeed and advance in the work place.

     Being honest is a common characteristic found in those who are action-oriented. These are the employees who get the job done. They accomplish work on time, efficiently, and accurately. These trusted employees take action and businesses thrive because of them. Being action oriented builds credibility and trust within a company and leads to future growth and advances (Sundheim, 2014, para. 12).

     Those who are honest, hardworking employees must be passionate about what they   do in order to succeed. Loving what you do makes all the difference when it comes to a career choice. Passion that is possessed spreads rampantly in the workplace and leads to higher productivity and a happier work environment (Grier, 2012, para. 8). Having passion will open many doors because it’s an outward characteristic that is easily noticed by managers.

     To possess honesty, an action-oriented mindset, and passion in the workplace is crucial. These professional characteristics will lead to the success of the business and employee. Those who develop these qualities will be the ones getting hired.

References

Grier, S. (2012). How passion for your job can lead to success. IT Managers Inbox. Retrieved from http://itmanagersinbox.com/1559/how-passion-for-your-job-can-lead-to-success/ 

Sundheim, K. (2014). 15 traits of the ideal employee. Forbes. Retrieved from http://www.forbes.com/sites/kensundheim/2013/04/02/
15-traits-of-the-ideal-employee/

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