The gap in explaining over $40 trillion in corporate value

The intangible economy is nearly 60% globally (over 70% in the USA and over 80% of the S&P500) yet companies and investors have little insight into what drives this value.

There is a growing and vocal debate on the measurement and reporting of intangible assets, especially brands.  This has been pursued for years by valuation firms (Interbrand, Brand Finance, Eurobond and the big 4 accounting firms) standards bodies such as the IVSC, ISO and MASB and select academics.  

The present discussion is happening on the messaging boards at cfo.com Discussing the Moribund Effect

This is in response to an article written by the late Roger Sinclair who actively lobbied for an evolution in reporting standards for intangibles, especially brands.

I invite you to go and think about what it implies to the management of your company if the majority of your value is driven by a mysterious force, which, by the way, is measurable with today's technology.  Not as accurately as a handful of coins but more than enough to make accurate and sound business decisions.

It is critical to explore how intangibles are represented within a company, otherwise, decisions made using frequently out of date metrics such productivity and return on assets (frequently capital assets) will direct companies down the path of losing corporate value.

More thoughts, and some history, on the need to evolve our reporting of intangibles will be made available in the near future.