A Brief on Estimating Costs of Intangible Assets During Capital Budgeting Decisions

Intangible assets and capital structure

Tangible assets, many of which can be easily collateralized, support debt. Accordingly, the amount of tangible assets is well-established as a principal driver of leverage. As investing is shifting more and more from tangible to intangible assets, it becomes crucial to understand to what extent intangible assets support debt. Analyzing this question empirically has been largely unfeasible due t...

Intangible Assets – Web Site Costs

The AASB intends to formally approve all UIG Abstracts that are equivalent to IASB Interpretations on the same day in 2004. The UIG intends to finalise the contents of Proposed Pending Abstracts on a progressive basis and to make them available on the AASB web site, to assist entities to identify changes that may be needed in their financial reporting systems. When agreed by the AASB, Pending A...

Intangible Assets: Computers and Organizational Capital

In developed economies, production requires not only such traditional factors as capital and labor but also skills, organizational structures and processes, culture, and other factors collectively referred to as " intangible assets. " Detailed investigation of some of these types of assets has found that they are often large in magnitude and have important productivity benefits. For example, Da...

The Capital Budgeting Decisions of Small Businesses

Intangible Assets

Intangible assets are a very economically significant asset class yet are largely excluded by accounting conventions from corporate balance sheets. Ownership (or control) of intangible assets can allow firms to differentiate their offerings to customers and establish some degree of competitive advantage. However, intangibles do not, apart from a few cases of licensing, generate value on their o...