For many (global) corporations, most of the balance sheet is accounted for by intangible assets (from intellectual property to goodwill).... so, what has inflation done to these values..
If inflation is cost-driven then it should have had no impact; if its a monetary phenomenon then how stable are intangibles' value?
If intangibles are already difficult to value, how might inflation shift corporate valuations if dependent on intangibles?
Its an interesting Q.
#intangibles
h/t Stuart Kirk/FT
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JW
In response to this post@ChrisMayLA6
Your question also raises the question of how goodwill is calculated and reported. I can't recall an instance of a company's annual report commenting on goodwill, even after their reputation tanked through their own actions.
@jwi
Yes, I've always thought 'goodwill' is really the residual between that can be valued & the market price.... because 'goodwill' sounds better than 'speculative premium'
by Emeritus Prof Christopher May ;
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John_Loader
In response to this post@ChrisMayLA6 are patents or IP addresses considered that? The company I worked for went into voluntary liquidation. The receivers sold both of those and finally resulted in my pension being increased in 2018 though as service pre 1997 no further increases for life. I think we owned the first two numbers of IP addresses either 49 or 47 I think
@John_Loader
Yup, intellectual property & proprietary web data would be 'intangibles'.... and of course valuing IPRs is a mugs' game
by Emeritus Prof Christopher May ;
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Donald Roy
In response to this post@ChrisMayLA6
Not to mention double counting of intangible assets - which featured in a famous recent case in #newyork involving a particularly well known individual and organisation!
Tags: #newyork
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