intangible asset

Capitalism Without Capital: The Rise of the Intangible Economy

by Jonathan Haskel and Stian Westlake  · 7 Nov 2017  · 346pp  · 89,180 words

after the conference, Charles Hulten combed through Microsoft’s accounts to explain why it was worth so much (Hulten 2010). He identified a set of intangible assets, assets that “typically involve the development of specific products or processes, or are investments in organizational capabilities, creating or strengthening product platforms that position a

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facing us today: innovation and growth, inequality, the role of management, and financial and policy reform. We shall argue there are two big differences with intangible assets. First, most measurement conventions ignore them. There are some good reasons for this, but as intangibles have become more important, it means we are

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them: an interesting issue for statistics bureaus, but little more. But there is, we will argue, a more important consequence of the rise of intangibles: intangible assets have, on the whole, quite different economic characteristics from the tangible investment that has traditionally predominated. First of all, intangible investment tends to represent a

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. The tendency for others to benefit from what were meant to be private investments—what economists call spillovers—is a characteristic of many intangible investments. Intangible assets are also more likely to be scalable. Consider Coke: the Coca Cola Company, based in Atlanta, Georgia, is responsible for only a limited number

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systems and cultivated biological resources. As intangibles it includes R&D, mineral exploration and evaluation, computer software and databases, and creating artistic originals. The other intangible assets are those set out in Corrado, Hulten, and Sichel 2005. Intangible Investment Has Steadily Grown The story of how intangible investment expanded in the gym

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the time were not focused on measuring intangible investment, in recent years scholars have been able to reconstruct how much was invested by businesses in intangible assets decades ago. Figure 2.1. Intangible and tangible investment over time, United States. Data are US business investment in intangible and tangible assets relative

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This fact has not been lost on economists. Over the last century researchers in different subfields of economics have looked into various unusual properties of intangible assets. David Warsh’s fascinating book Knowledge and the Wealth of Nations tells the story of how the economist Paul Romer developed an improved theory of

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the ways in which intangible investment differs from tangible investment. In the section that follows, we’ll look at each of the four characteristics of intangible assets—scalability, sunkenness, spillovers, and synergies—and discuss (a) why intangibles behave this way (especially in comparison with tangible investments) and (b) why each characteristic

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, consist of metal but also lots of knowledge, for example, from the production process. Why then isn’t a tangible asset simply a collection of intangible assets? It’s helpful to think of “embodied” and “disembodied” knowledge. To produce an airliner requires tangible inputs (like metal) and intangible inputs (like software

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media/for-organisations/documents/1151/datasets-foi-guidance.pdf. Scalability Why Are Intangibles Scalable? Physical assets can only be in one place at one time. Intangible assets, by contrast, can usually be used over and over, in multiple places at the same time. Once you’ve written the Starbucks operating manual

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and design—once, before it can then make an arbitrarily large number of engines. This scalability applies to many sorts of intangible assets. Once a business has created or acquired an intangible asset, it can usually make use of it again and again at relatively little cost, compared to most physical assets. The

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“network effects.” A network effect exists when assets become more valuable the more of them exist. Network effects can be found among both tangible and intangible assets. So, for example, telephones or fax machines are much more valuable when almost everyone has them. Indeed, the current digital tech revolution has drawn

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to spread across the world. Google, Microsoft, and Facebook need relatively few tangible assets compared to the manufacturing giants of yesteryear. They can scale their intangible-asset bundle or software and reputation and so get very big. This type of scalability is, of course, enhanced by network effects.3 Second, with

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changes complex, messy intangible lending into something a lot more like a simple mortgage. Sunkenness also contributes to the uncertainty around intangible assets. Part of the reason for sunkenness is that intangible assets are often very context-specific. It might be a supply chain relationship that is unique to the particular industry or suppliers

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spillovers of the original investment. There are good reasons to deplore patent trolling—but it is a pretty straightforward consequence of the spillover characteristic of intangible assets. If the law isn’t strong enough, companies can lobby to have it changed. Copyright lawyers sometimes talk about the Mickey Mouse Curve—the

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property. Conclusion: The Four S’s of Intangibles Intangibles have four unusual economic properties. These properties can exist with tangible investments, but on the whole intangible assets exhibit them to a greater degree. These characteristics are: • Scalability • Sunkenness • Spillovers • Synergies Three further characteristics emerge from these four, namely, uncertainty, option value,

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intangibles (measured by R&D), spending on regulation and lobbying has an even stronger effect on valuations (Bessen 2016). Now, perhaps the contestedness of intangible assets that we discussed in chapter 4 encourages firms to spend money asserting or protecting their claims to them. In recent years, an increasing proportion of

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we have entered a phase where the transition to an intangible economy is requiring a new set of institutions to resolve the inherent contestedness of intangible assets. An optimistic interpretation of this is that the legal and institutional structures behind a transformation to an intangible-intensive economy are being worked out

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economy is in a phase where the transition to an intangible economy, which requires a new set of institutions to resolve the inherent contestedness of intangible assets, has skewed investment toward lobbying, legal arguments, and institutional reboots, none of which are immediately productive. Appendix: Effect of Unmeasured Intangibles on GDP Growth

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might be expected to increase inequality both of wealth and income. Increasingly intangible-intensive firms will need better staff to create synergy with their other intangible assets: better managers, better movie stars, better sports heroes. Firms will screen them more thoroughly and pay them more handsomely. As for wealth inequality, the

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we shall do something different. We shall instead concentrate on whether the gradual change in the capital base of the “real economy” from tangible to intangible assets has implications for the functioning of the financial sector. We will argue two main things. First, that the gradual shift to intangibles helps explain

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many of the perceived problems that the financial sector is accused of. The reason for this can be traced back to the economic qualities of intangible assets that we outlined in chapter 4: scalability, sunkenness, spillovers, and synergies, and the broader characteristics that emerge from them, uncertainty and contestedness. Second, we

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investments and penalizing managers with a short-term horizon. The alignment of shareholder and manager incentives that blockholding brings is all the more important with intangible assets, since they are so often hidden from outside investors’ view and so effort is needed to unearth them. We’ll discuss further why they

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highly paid too, and the superior performance of these funds does not persist. One possibility is that this persistence stems from the characteristics of the intangible assets that VC-backed businesses invest in. We have seen that intangibles often have significant synergies with one another: for example, combining Google’s search

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trained employees providing customer service. Indeed, perhaps the most distinctive asset will be the ability to weave all these assets together; so a particularly valuable intangible asset will be the organization itself. These insights are implicit in Peter Thiel’s book Zero to One. His view is that commercial success is built

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the right organizational design, and that choice depends on whether your organization predominantly uses or produces intangibles. So, if you are predominantly a producer of intangible assets (writing software, doing design, producing research) you probably want to build an organization that allows information to flow, helps serendipitous interactions, and keeps the

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stressing the new scope for easier exchange of ideas, experimentation, and faster implementation of ideas. What if, by contrast, you are more a user of intangible assets: say, the Amazon warehouse, using the knowledge of the routing algorithm, or Starbucks, using the franchise book? For these firms, the organization and so

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encouraging influence activities suggest that different types of organizations will emerge, matched to the parts of the intangible economy they specialize in. Are you creating intangible assets (writing software, doing design, producing research)? If so, you probably want a flat organization with more autonomy, fewer targets, and more access to the

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on influence activities, but will build an organization that allows information to flow, helps serendipitous interactions, and keeps the key talent. Are you using intangible assets (say, the routines in the Starbucks franchise book)? Then you probably want more control and authority to use the asset to its fullest advantage and

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managers would do so by building trust and long-term relationships in the industries where they chose to make their expertise. With the building of intangible assets and the lack of information in company accounts, the pressures for this change are there. Conclusion: Competing, Managing, and Investing in an Intangible Economy

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The growth of intangible investment has significant implications for managers, but it will affect different firms in different ways. Firms that produce intangible assets will want to maximize synergies, create opportunities to learn from the ideas of others (and appropriate the spillovers of others’ intangibles), and retain talent.

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workplaces may end up looking rather like the popular image of hip knowledge-based companies. But companies that rely on exploiting existing intangible assets may look very different, especially where the intangible assets are organizational structure and processes. These may be much more controlled environments—Amazon’s warehouses rather than its headquarters. Leadership will

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areas and exploit their synergies. Financial investors who can understand the complexity of intangible-rich firms will also do well. The greater uncertainty of intangible assets and the decreasing usefulness of company accounts put a premium on good equity research and on insight into firm management. This will present a challenge

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good” looks like in intellectual property is very hard. Second, we saw that in an intangible economy, synergies are very important. Combining different ideas and intangible assets sits at the heart of successful business innovation—and is what marks out the world’s most successful companies, from Google to Disney to Tesla

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industries since the early twentieth century. Given sufficient advances in technology and infrastructure, these kinds of markets and institutions need not be limited to major intangible assets like patents or copyrights. They may also be applicable to the tiny elements of user-generated data that collectively make up the vastly valuable databases

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need to thrive? First of all, governments should encourage new forms of debt finance that make it easier for companies to borrow against intellectual property—intangible assets to which property rights can be attached. Government cannot usually make financial innovation happen, but it can make it easier. As we saw, the

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of those problems, creating particularly socially charged forms of inequality, threatening social capital, and creating powerful firms with a strong interest in protecting their contested intangible assets. We would like to tell you we have a solution to this problem, but, like most politicians in the developed world, we do not.

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the financing of business investment. Debt finance is less appropriate for businesses with more sunk assets; public equity markets appear to undervalue at least some intangible assets in part due to underreporting of such assets but also due to the uncertainty around intangibles; venture capital, a response to the sunkenness and

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uncertainty around intangibles, is currently hard to scale to many industries. d. New requirements for infrastructure. In particular, the shift from tangible to intangible assets has increased the need for IT infrastructure and affordable space in large cities, while making greater demands on our “soft infrastructure”: the norms, standards, and

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2010/09/Manufacturing-Survey-Instrument.pdf.) 9. There are, of course, a lot of complications over and above these general principles. First, in company accounts, intangible assets are often split into “intangibles other than goodwill” (such as the patent discussed) and “goodwill.” Goodwill is generated only externally, when a business is combined

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of Earnings Inequality among the ‘Other 99 Percent.’ ” Science 344 (6186). Awano, G., M. Franklin, J. Haskel, and Z. Kastrinaki. 2010. “Measuring Investment in Intangible Assets in the UK: Results from a New Survey. Economic & Labour Market Review 4 (7): 66–71. Bakhshi, Hasan, Carl Benedikt Frey, and Mike Osborne. 2015

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“What Do CEOs Do?” Harvard Business School, Working Paper, No. 11–081. Barth, Mary E., Ron Kasznik, and Maureen F. McNichols. 2001. “Analyst Coverage and Intangible Assets.” Journal of Accounting Research 39 (1): 1–34. doi:10.1111/1475-679X.00001. Belfield, Chris, Jonathan Cribb, Andrew Hood, and Robert Joyce. 2014. Living

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Connections in Late Victorian Britain.” Journal of Economic History 73 (1): 142–76. doi:10.1017/S0022050713000053. Brynjolfsson, Erik, Loren Hitt, and Shinkyu Yang. 2002. “Intangible Assets: How the Interaction of Computers and Organizational Structure Affects Stock Market Valuations.” Brookings Papers on Economic Activity 33 (1): 137–98. Brynjolfsson, Erik, and Andrew

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Future of Cities.” Journal of Urban Economics 43 (1): 136–56. Giorgio Marrano, Mauro, and Jonathan Haskel. 2007. “How Much Does the UK Invest in Intangible Assets?” CEPR Discussion Papers, No. DP6287. http://ideas.repec.org/p/cpr/ceprdp/6287.html. Giorgio Marrano, Mauro, Jonathan Haskel, and Gavin Wallis. 2009. “What

Infonomics: How to Monetize, Manage, and Measure Information as an Asset for Competitive Advantage

by Douglas B. Laney  · 4 Sep 2017  · 374pp  · 94,508 words

: removal. The removal or dumping of physical assets is a last resort, and not much in the realm of sustainability. But with non-physical or intangible assets, removing unneeded ones is easy and doesn’t harm your or anyone else’s information ecosystem. But it can help with lessening personnel, storage, processing

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are responsible for taking advantage of them. Because technologies and business models evolve rapidly, organizations must continually evolve their information management practices and competencies. Other Intangible Assets Finally, let’s examine one last class of asset: intangibles. Increasingly we compete in a marketplace of ideas. These ideas manifest not in tangible things

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Information Asset Management We’ve taken a protracted journey through the worlds of supply chains and ecosystems, various IT processes and standards, physical, financial, and intangible asset management approaches, and even library science. But not just for fun. These well-honed industry-standard methodologies, capability models, and standards and checklists offer tremendous

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. These changes, they argued, had rendered classic accounting practices all but ineffectual at gauging what has become the largest source of value in businesses today: intangible assets. Steve M. Samek, of Arthur Andersen, lamented that balance sheets and income statements “form the backbone of today’s accounting system” but fail to “capture

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it. Over a decade and a half since this hearing, what has been done to improve transparency or to formally account for information and other intangible assets while the economy has become ever more digital? Not much, according to Tom Linsmeier, retiring board member of Financial Accounting Standards Board (FASB), who said

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: “[T]he current accounting model fails to provide much information on most internally developed intangible assets, resulting in an often-increasing market to book ratio for these organizations and leaving users with little financial reporting information to make their valuation assessments

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that their company’s information asset value is represented under goodwill or elsewhere on the balance sheet.7 Despite meeting all the criteria of an intangible asset, information is absent as an asset class on the balance sheet. Even among enterprises whose core business is the buying and selling of information (e

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not their information assets. Yet, these assets are either their primary source of revenue generation, or increasingly and tangibly contribute to their top line. Even intangible assets, such as copyrights, patents, and trademarks, are recognized and reported. Therefore, the growing disparity between corporate book values and market values is in large part

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quantify information’s future potential. Moreover, it seems clear that information meets the formal criteria of an intangible asset as defined by accounting standards. The International Accounting Standards (IAS)16 defines the critical attributes of an intangible asset as: Lacking physical substance (and non-monetary), Identifiability (capable of being separated and sold, transferred, licensed

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reportable assets (specifically those internally generated) states: Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance shall not be recognised as intangible assets.20 In this single short sentence, the accounting aristocracy basically says, “Although these valuable things may meet the criteria of an asset, we are not

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non-GAAP footnotes regarding the valuation of certain intangibles. One of the key items of contention regards proving the ownership and/or control of certain intangible assets. This is not just an accounting issue—it’s one of serious legal and operational concern to many organizations. Who owns the information you generate

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value of each active account is about $211. 11 “Ocean Tomo Releases 2015 Annual Study of Intangible Asset Market Value,” Ocean Tomo Insights Blog, 05 March 2015, www.oceantomo.com/blog/2015/03-05-ocean-tomo-2015-intangible-asset-market-value/. 12 “Asset,” Merriam-Webster, accessed 09 February 2017, www.merriam-webster.com/ C

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.ifrs.org/IFRSs/Documents/Technical-summaries-2014/Conceptual%20Framework.pdf. 16 “IAS 38—Intangible Assets,” IASPlus, Deloitte, www.iasplus.com/en/standards/ias/ias38. 17 Additionally, information meets each of the IFRS criteria for intangible assets. 18 “Technical Summary, IAS 38 Intangible Assets,” IFRS, 01 January 2014, www.ifrs.org/IFRSs/Documents/Technical-summaries-2014/IAS

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%2038.pdf. 19 IFRS criteria for intangible assets include: a) an intention to complete and use or sell it, b) an

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there is a market for it, d) an ability to measure reliably the expenditure attributable to it during its development. 20 “Technical Summary, IAS 38 Intangible Assets,” IFRS, 01 January 2014, www.ifrs.org/IFRSs/Documents/Technical-summaries-2014/IAS%2038.pdf. 21 It is generally understood that “similar items in substance

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Combinations,” IFRS, 18 February 2011, http://ec.europa.eu/internal_market/accounting/docs/consolidated/ifrs3_en.pdf. 23 “Discussion Paper, Initial Accounting for Internally Generated Intangible Assets,” The Office of the Australian Accounting Standards Board, 2008, www.saica.co.za/Portals/0/Trainees/documents/DPInitialAccountingInternallyGeneratedIntangibleAssets.pdf. 24 “FASB Invitation to Comment, Agenda

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asset definition specifies that an asset must be controlled by some entity. Accountants assert that control is easier to establish than is ownership, particularly for intangible assets—so when control alone can be ascertained for something, it is most often afforded asset status. Control must be asserted or demonstrable via past events

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with some PII. To further establish the control aspect of an asset, accounting standards require the condition that it is identifiable. This applies specifically to intangible assets wherein there is some question of separability—meaning that they are not inexorably bound to another asset or unable to be quantified. International Accounting Standard

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38 (IAS 38) details the requirements for identifying and capitalizing intangible assets. It defines intangible assets as “non-monetary assets which are without physical substance.” The standard further specifies that recognizable intangibles must be “identifiable (either being separable or arising

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and negative business impact if lost, stolen, or damaged. Accountants prefer this method as a more conservative and less volatile approach for initially valuing most intangible assets. However, some factors require estimation and subjectivity. Remember that these costs most likely are expensed already, so the CVI merely expresses the value of information

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current information-driven society and increasingly digitalized world, sentiments are shifting from the economics of tangible assets to the economics of information—“infonomics”—and other intangible assets. I have relegated the examination of information economics toward the end of this book, not just because it is the “-nomics” in the “infonomics” portmanteau

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, 107, 113, 161, 236, 246, 265, 287, 289, 298, 301 innovation and digitalization, value 265 Instagram 34 Institute of Electrical and Electronics Engineers (IEEE) 147 intangible assets 168–9 integrity 248 intellectual property (IP) 62, 116, 128, 130, 168, 176, 181, 230–1, 288 International Accounting Standards Board (IASB) 214 International Accounting

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, information as Pacioli, Luca 210 Panchmatia, Nimish 43 Patel, Ash 134 patent 1, 19, 28; algorithm 239nn17–18; applications 230–1, 260; economic value 229; intangible asset 168, 207; intellectual property 128, 130 Patrick, Charlotte 34 People Capability Maturity Model (P-CMM) 165–6 people-process-technology 99 Pepsi 40 performance metrics

Valuation: Measuring and Managing the Value of Companies

by Tim Koller, McKinsey, Company Inc., Marc Goedhart, David Wessels, Barbara Schwimmer and Franziska Manoury  · 16 Aug 2015  · 892pp  · 91,000 words

(725) 3,685 (1,297) 2,957 (1,540) 2,907 Invested capital Operating working capital Property, plant, and equipment, net Capitalized operating leases Intangible assets, capitalized software Other operating assets, net of liabilities Invested capital (excluding goodwill)3 2,119 17,621 5,684 388 (1,060) 24,752 1

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sheet mixes together operating assets, nonoperating assets, and sources of financing. The income statement similarly combines operating profits, interest expense, the amortization of acquired intangible assets, and other nonoperating items. To prepare the financial statements for analyzing economic performance, you need to reorganize the items on the balance sheet, income statement

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976 9,056 4,917 5,044 533 780 11,274 2,908 5,460 522 793 9,683 Net PP&E Goodwill Other intangible assets, acquired1 Other intangible assets, capitalized software Restricted cash Investments2 Deferred income tax assets Postretirement benefit assets 3 Other noncurrent assets Total assets 17,621 2,101 197

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operating liabilities); fixed assets (net property, plant, and equipment); net other long-term operating assets (net of long-term operating liabilities); and, when appropriate, intangible assets (goodwill, acquired intangibles, and capitalized software). Exhibit 9.5 demonstrates this line-by-line aggregation for UPS and FedEx. In the following subsections, we examine

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investments in software. Under certain restrictions, these investments can be capitalized on the balance sheet rather than immediately expensed. Although it is labeled as an intangible asset, treat capitalized software no differently than property and equipment; treat amortization as if it were depreciation; and treat investments in capitalized software as if

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they were capital expenditures.4 Only internally generated intangible assets, however, should be treated in this manner. Acquired intangibles require special care and are discussed separately. Other operating assets, net liabilities If other long

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the company periodically tests the level of goodwill to determine whether the acquired business has lost value. If it has, goodwill is impaired (written down). Intangible assets (which differ from goodwill in that they are separable and identifiable) are amortized over the perceived life of the asset. REORGANIZING THE ACCOUNTING STATEMENTS: IN

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709 5,133 Valuation allowance Deferred-tax assets, net (205) 3,910 (220) 6,459 (251) 4,882 Liabilities Property, plant, and equipment Intangible assets, capitalized software 1 Intangible assets, acquired 2 Other Deferred-tax liabilities Net deferred-tax assets (liabilities) 2011 2012 2013 259 (205) 54 258 (220) 38 279 (251) 28

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carryforwards Valuation allowance Loss and credit carryforwards, net of taxes Insurance reserves Vacation pay accrual Stock compensation Other deferred-tax assets Property, plant, and equipment Intangible assets, capitalized software1 Other deferred-tax liabilities Operating deferred-tax assets (liabilities) 696 737 765 208 209 224 211 159 70 635 708 709 (3,

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) (1,023) (554) (617) (651) (3,235) (3,359) (3,491) Nonoperating deferred taxes Pension and postretirement benefits 2,106 4,608 3,086 Intangible assets, tax gross-up Intangible assets, acquired2 (73) (66) (93) Net deferred-tax assets (liabilities) (1,202) 1,183 (498) (3,607) (3,624) (3,613) (878) (969)

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. 2 Estimated at the marginal tax rate times acquired intangibles. pensions), debt (such as implicit interest), or debt equivalents (such as restructuring expenses). 3. Intangible assets, gross-up: As discussed earlier, deferred-tax liabilities related to amortization of acquired intangibles should be netted against acquired intangibles. Exhibit 9.8 uses the

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long-term operating provisions, nonoperating restructuring provisions, and provisions created 32 One exception to this conservatism is the development of software. Although software is an intangible asset, GAAP and IFRS accounting allows for certain software investments to be capitalized and amortized over the life of the asset. For UPS, these investments are

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we then discovered that the ROIC included goodwill, and the expected improvement in ROIC would be caused solely by 2 Goodwill and acquired intangibles are intangible assets purchased in an acquisition. To be classified as an acquired intangible, the asset must be separable and identifiable, as in the case of patents.

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for the most common line items. The three primary operating line items are operating working capital, long-term capital such as net PP&E, and intangible assets related to acquisitions. Nonoperating line items include nonoperating assets, pensions, and deferred taxes, among others. We discuss each category next. MECHANICS OF FORECASTING 245

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intellectual property do not recognize their investment on the balance sheet unless acquired. For more on how to compute invested capital for companies with large intangible assets, see Chapter 21. EVALUATING OTHER APPROACHES TO CONTINUING VALUE 273 EXHIBIT 12.11 Continuing-Value Estimates for a Sporting Goods Company Continuing value, $ million

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amortization of intangibles from the calculation of ROIC and free cash flow. It is noncash, and, unlike depreciation of physical assets, the replacement of intangible assets is already incorporated in EBITA through line items such as marketing and selling expenses. So using EBITA is preferred, both from a logical perspective and

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because it leads to more comparable multiples across peers. To illustrate the distortion caused by amortization of acquired intangible assets, we compare two companies with the same size and underlying operating profitability. The difference is that Company A achieved its current size by acquiring

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To avoid forming a distorted picture of their relative operating performance, use EV-to-EBITA multiples. In limited cases, companies will capitalize organic investments in intangible assets, just as UPS capitalized its software development costs (Chapter 9), and then amortize them over their useful life. In these cases, you should separate

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company generated $2,000 million in domestic earnings before interest, taxes, and amortization (EBITA) and $500 million in EBITA from foreign operations. The company amortizes intangible assets held domestically at $400 million per year. Thus, domestic earnings before interest and taxes (EBIT) are $1,600 million. The company holds debt locally

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2,400) Deferred tax assets, net of liabilities (5,850) (5,900) 2. Acquired intangibles (a DTL): When a company buys another company, it recognizes intangible assets on its balance sheet for items such as patents and customer lists.10 Since these assets are amortized on the income statement but are not

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operating taxes (computed in Exhibit 18.5) already exclude the amortization tax benefit in calculating NOPLAT, no adjustment is required for deferrals related to these intangible assets. Instead, treat deferred taxes related to amortization of intangibles as nonoperating. 3. Pension and postretirement benefits (a DTL): In the United States, the government

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valuation more transparent and less prone to error. 10 Under current accounting standards, the premium paid in an acquisition is split between goodwill and other intangible assets (acquired intangibles). Acquired intangibles include identifiable and separable assets like patents, copyrights, product formulas, and customer lists. Unlike goodwill, acquired intangibles are amortized over

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for this mismatch, the company creates a deferred-tax liability when it makes the acquisition. To keep the balance sheet balanced, the company also increases intangible assets (known in accounting as “grossing up”) by the size of the new DTL. Since the grossed-up intangible and deferred-tax liability are purely

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corresponding nonoperating account (as for pensions and convertible bonds), valued separately (as for net operating loss carryforwards), or ignored as an accounting convention (as for intangible assets). For each deferred-tax account, there are four valuation methodologies: 1. Value as part of NOPLAT and subsequently enterprise value. Any DTA or DTL

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1 Statement of Financial Accounting Standards (SFAS) No. 141(R), Business Combinations, requires that companies recognize acquired in-process R&D as an indefinite-lived intangible asset. Before 2009, companies expensed purchased in-process R&D. SFAS 141(R) brings in-process R&D accounting into line with International Financial Reporting Standards

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(2,659) (2,349) (2,174) 4,963 4,900 4,969 SG&A expense R&D expense Royalty expense Amortization expense Goodwill impairment charges Intangible-asset impairment charges Contingent consideration expense Restructuring charges Litigation-related charges Gain on divestiture Operating income (loss) (2,487) (2,535) (2,674) (895) (886)

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forecasts accordingly. A comprehensive list of nonoperating items and one-time charges is impractical, but the following items are the most common: amortization of acquired intangibles; asset write-offs, including write-offs of goodwill and purchased R&D; restructuring charges; litigation charges; and gains and losses on asset sales. Since each

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142 and IFRS 3. The premium paid for acquisitions is no longer classified solely as goodwill, but instead is separated into intangible assets and goodwill. To be classified as an intangible asset, the asset must be separable and identifiable. If it is not, it is classified as goodwill.5 Goodwill is 3 P

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EBITA (not EBIT) to determine operating profits. Since amortization is excluded from operating profit, remember to include the cumulative excluded amortization in your total for intangible assets on the balance sheet. A corresponding entry should be made to equity (titled “cumulative amortization”) to balance total funds invested. Why not amortize intangibles,

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particularly since we include depreciation in our calculation of ROIC? The idea of recognizing an intangible asset and then amortizing its use over a useful life is a good one. Yet current accounting standards do not allow companies to take this approach

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its financial statements, once through selling, general, and administrative (SG&A) expenses and again through amortization. In fact, to expense the creation of new intangible assets while amortizing old intangibles would be tantamount to including both capital expenditures and depreciation on the income statement, a clearly undesirable characteristic. For valuation purposes

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acquired intangibles at their original values. To do this, compute operating profit before amortization, and add cumulative amortization to the current value of goodwill and intangible assets. Exhibit 19.3 demonstrates the effect of amortizing acquired intangibles on margins for three companies in the pharmaceuticals industry. Based on EBIT margin, it

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however, can be attributed to the amortization of acquired intangibles. In 2009, Merck acquired Schering-Plough for $41 billion, leading to the recognition of substantial intangible assets and hence significant amortization. Bristol-Myers Squibb also has been an active acquirer, but on a smaller scale. Because Merck’s and Bristol-Myers Squibb

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’s EBITs each include investments required to replenish intangible assets (via SG&A) as well as an amortization charge from acquisitions, this double penalty artificially lowers each company’s EBIT. Stripping out amortization, Merck

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builds a plant or purchases equipment, it capitalizes the asset on the balance sheet and depreciates it over time. Conversely, when a company invests in intangible assets such as a new production technology, a brand name, or a distribution network, the entire outlay must be expensed immediately. In sectors such as

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and ASML, had to invest in research projects over many years to build and sustain their current product offerings. The economics of investments in intangible assets are very similar to those of investments in tangible assets. Their treatment in ROIC should therefore also be the same to ensure that it adequately

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Intangible Resources In general, capitalizing intangible investments will lead to lower ROIC. For mature companies with stable revenues and investment spending, the amortization charges for intangible assets are likely to be close to the amounts expensed. As a result, NOPLAT might not be affected that much by capitalizing the expenses. But

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borrowings Employee benefits Provisions Other items Total (620) (536) 13 19 (607) (517) 122 2 383 108 47 662 119 1 315 101 59 595 Intangible assets Tax loss carryforwards (1,535) (1,234) 238 220 Total net assets (liabilities) (1,242) Recognized as assets Recognized as liabilities Total net assets (

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in the 2010 balance sheet to €112 million in 2013. We treat these as nonoperating liabilities that are deducted from other financial assets.4 Intangible assets We split intangible assets as reported into operating intangibles and goodwill and acquired intangibles, so we can estimate return on invested capital (ROIC), including and excluding goodwill

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acquired intangibles. 5 Excludes changes in operating deferred-tax liabilities included in operating cash taxes. 6 Excludes changes in deferred-tax liabilities related to acquired intangible assets. REORGANIZING FINANCIAL STATEMENTS 527 EXHIBIT 24.12 Heineken: Balance Sheet and Invested-Capital Items Affected by Restatements € million 2012 reported 2012 restated 8,792

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17,465 (1,535) (1) 11,691 1,632 409 (676) 11,734 1,575 410 (662) 1 Balance sheet Property, plant, and equipment Intangible assets Deferred-tax assets Total assets restatement effect Trade and other payables Employee benefits Provisions Equity attributable to equity holders of the company Total liabilities and

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1.5 2.5 4.0 – – – 4.0 Operating expense ratios, % Raw materials/revenues Personnel expense/revenues Depreciation/assets Amortization of operating intangibles/assets Amortization of acquired intangibles/assets 63.8 15.0 14.8 44.2 9.7 64.0 16.2 12.2 26.5 5.6 64.5 15.8

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be able to retain the 2013 level of 44 percent. We also keep the level of other noncurrent operating assets (advances to customers) and operating intangible assets (software) at their 2013 levels of 1.6 and 1.1 percent of revenues, respectively. r Nonconsolidated investments (investments in associates and joint ventures):

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acquired intangibles. 5 Excludes changes in operating deferred-tax liabilities included in operating cash taxes. 6 Excludes changes in deferred-tax liabilities related to acquired intangible assets. 542 CASE STUDY: HEINEKEN EXHIBIT 24.24 Heineken: Forecast of Economic Profit € million Historical Forecast Before goodwill 2013 2014 2015 2016 2017 2018 After

Restarting the Future: How to Fix the Intangible Economy

by Jonathan Haskel and Stian Westlake  · 4 Apr 2022  · 338pp  · 85,566 words

material economy to one based on ideas, knowledge, and relationships in our 2017 book, Capitalism without Capital. There we noted the shift towards investment in intangible assets (such as software, data, R&D, design, branding, training, and business processes). This shift has been ongoing for more than four decades. As we

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are difficult to use as security for loans. Simultaneously, wasteful influence activities increase: there are more lawsuits around intellectual property, which grants ownership over certain intangible assets, and dysfunctional arguments over planning and zoning occur in the densely populated areas where intangible investment seems to thrive. Without the right institutions, two problems

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economic implications. Specifically, we believe that our current problems exist because the nature of capital has changed, with businesses investing ever more in (largely unmeasured) intangible assets; the growth of this intangible capital has slowed in the past decades; and we have not yet mitigated the challenges caused by intangibles. Nor have

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differently from the physical assets that made up most business investment in the past. Specifically, we identified four main ways in which intangible assets tend to differ from tangible assets: (1) intangible assets are often highly scalable (an asset like an algorithm can be used across a very large business); (2) intangibles have spillovers

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first proposed measuring intangible investments in a 1962 book; it was subsequently popularised by management guru Peter Drucker. More recently, a 2013 OECD report on intangible assets described them as “knowledge-based capital.” It is true that some intangibles can fairly be described as knowledge—for example, the result of R&D

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as postindustrial, a phrase coined by French sociologist Alain Touraine and popularised by Daniel Bell in the 1970s. People sometimes infer from this description that intangible assets are mainly important to service industries and that an intangibles-rich economy is one with many services and little manufacturing. But this too is a

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think about intangible capital. If we look at manufacturing firms in rich countries, we find that, for the most part, they are heavy investors in intangible assets as well as tangible assets. They invest in R&D and design in order to produce cutting-edge products, in organisational development and training to

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profitability include a commitment to research, development, and innovation; strong, durable, information-rich relationships with suppliers and customers; and excellent workforce skills and organisation: all intangible assets.40 The success of the so-called developmental state in Japan, Taiwan, and South Korea would be impossible without heavy investment in intangibles such as

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as Google, Apple, Facebook, and Amazon. In a sense, this association is fair. The value of these business giants derives mostly from the very valuable intangible assets they own. But the importance of intangible investment is not limited to the tech sector. To the extent we can measure it, we find intangible

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to an intangibles-rich firm such as Facebook than to a laggard. In addition, it seems that large firms benefit particularly from the spillovers of intangible assets, to the extent that they are adept at exploiting these spillovers, copying or adapting their smaller competitors’ ideas (what the tech industry has come

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between the best and the rest, the benefits of clustering, and the rise of contestedness. The Gap between the Best and the Rest Because valuable intangible assets are scalable, a company that owns them can grow very big and very rapidly at its competitors’ expense. And because intangibles have synergies, a firm

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with several valuable intangibles will have a disproportionately strong competitive position. In addition, intangible assets’ ability to spill over to other firms can benefit market-leading businesses, to the extent that some of them are adept at capturing the benefit

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-behind towns or the countryside. The gap widens between the best, intangibles-rich businesses and their laggard competitors. The ownership of intangible assets is often unclear and therefore contested. And intangible assets are worth less in the event of business failure, posing a challenge for lenders and for businesses looking for credit. Intangibles and

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not be good measures of rivalry in an intangible-intensive world. When companies can scale up and exploit synergies, small differences between companies with attractive intangible assets and unattractive assets are greatly magnified. Thus, the leading companies will pull away from the laggards and reap rewards from intangible investment. That doesn’t

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arise everywhere. Instead, they arose for the most part in dynamic cities that exhibit the clustering and agglomeration effects driven by the growing importance of intangible assets. The link between inequality of status and the intangible economy is more obvious. As clustering has become more economically important, the economic divide between thriving

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own emergency hospitals and avoided breaching ICU capacity. In fact, the countries that excelled in handling the COVID-19 pandemic had made strong investments in intangible assets: effective track-and-trace and quarantine systems (which rely on software, data, and processes), functioning supply chains (to avoid the situation seen in several Western

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that have been able to maintain relatively large manufacturing sectors—Germany and Japan are prime examples—we find that their competitive advantage relies mostly on intangible assets: skills and training among their workforce, R&D and design abilities that allow them to stay at the cutting edge of product technology, and

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we will see from the history of the lighthouse, a good institution can become a bad one as the economy changes. The unusual properties of intangible assets require specific institutional arrangements, which for the most part do not yet exist. Institutional renewal and innovation are necessary to end the slowdown of intangible

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, synergies, sunk costs, and scale—and an economy increasingly dependent on it have changed the underlying conditions of exchange and generated new institutional requirements. Because intangible assets have spillovers, solving the collective-action problem becomes more important. The spillovers create new demands on institutions relating to property rights. If the benefits of

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the institutions that govern how cities are built and managed—in particular, the land-use and planning systems. Note, too, that if the combination of intangible assets is important, so potentially are influence and haggling costs. These costs manifest themselves in litigation and thickets around patents, but more constructively the social norms

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businesses involves a claim on the firm’s assets and significant institutional lock-in. A move to a world in which more firms have mainly intangible assets will require institutional innovation in business finance. To a certain extent, sunkenness is a consequence of inadequate property rights. For example, if there is

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promoting intangible investment. One example is intellectual property rules, which we discuss in chapter 4. Intellectual property rules help mitigate the problem of spillovers with intangible assets, but as intangibles become more important, the costs of patent thickets increase and the incentives for rights holders to lobby governments to change the rules

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tangible assets, from vehicles to machine tools, are mass-produced, and they can be bought and sold in secondary markets. This is less true for intangible assets, particularly those relating to innovation. The large synergies they exhibit when they are combined in the right way means that an intangibles-rich economy would

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effort to invent them in the first place. Put another way, the government overcomes the spillover problem by granting inventors a temporary monopoly over the intangible asset they have created, banning others from taking advantage of the spillover. But there is a well-documented literature of problems with patents and copyrights. Take

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sector have a debt-to-book value of almost 95 percent. It would, of course, be wrong to say that intangibles-intensive firms and even intangible assets themselves can never be financed with debt. Large-scale commercial lenders do not always or exclusively lend against collateral. They also use loan covenants related

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of exposures were collateralised by property and/or debentures, including charges over plant, equipment, and vehicles. These lending practices create problems for businesses reliant on intangible assets and with few tangible ones. Giovanni Dell’Ariccia, Dalida Kadyrzhanova, Camelia Minoiu, and Lev Ratnovski examined the composition of commercial bank lending in the United

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boomed (increasing from around 35 percent of bank balance sheets to 75 percent). Tellingly, they show that business lending fell the most in areas where intangible assets have grown. The implication is that the move to the intangible economy has contributed to the substantial change in commercial bank balance sheets towards real

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1990s. They provided two explanations. First, the accounting metrics used to identify glamour and value stocks no longer worked well, because many more businesses owned intangible assets that were not reflected in their balance sheets. Second, mean reversion, the wind in the sails of the value strategy, had slowed down. The rule

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good overview of the evidence), but the debate continues to rage. These two issues become more significant in an economy dominated by intangible assets. Consider spillovers. As we have seen, intangible assets often generate positive effects beyond the firm investing in them. Thus we might expect businesses to invest less in them than is

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bankers can exert a reasonable degree of control over business investment by simply raising or lowering the interest rate. But for a firm with abundant intangible assets, these mechanisms become less predictable. Because intangible capital is less easy to pledge as collateral with creditors, and because young intangibles-based firms often have

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financial system relies on no longer work well has several likely consequences. First, if it is harder for many businesses to obtain external finance for intangible assets, we would expect to see less intangible investment in the economy as a whole, and especially on the part of particular businesses—specifically, small and

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able to help the economy. Proposals The first challenge to address is how to create a better financial architecture to enable firms to invest in intangible assets. This requires a thoroughgoing change to the incentives and regulations we put on business finance. One important measure is to end the asymmetric tax treatment

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. How does competition affect prices in an intangibles-rich economy? The digital economy goes hand in hand with the growing importance of intangibles (recall that intangible assets include software and databases, for example). There is a lingering suspicion that competition might work differently online. After all, doesn’t the information that the

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more to the left in figure C.2. First, with more synergies the curve gets flatter. The more that a successful good requires combinations of intangible assets, the more costly is the lack of information. This relationship flattens the curve: at every information point, society can get fewer centralised goods. Second,

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can backfire, giving free rein to special interests. Indeed, lobbyists have a strong presence in fields such as intellectual property and the public funding of intangible assets. The other way to resist influence activities is less elegant from a design point of view but more flexible in the face of changing requirements

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35. Traina 2018. 36. Syverson 2019. 37. Haskel and Westlake 2017. 38. Davis 2018. 39. It is perfectly possible for a firm to have an intangible asset that does not involve a relationship: an expressive intangible evokes an emotion, so a design or work of art could evoke pathos, catharsis, awe, excitement

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covenants related to earnings. And Lim, Macias, and Moeller (2020) show that after an accounting change that booked intangible assets, borrowing rose; importantly, borrowing rose after the accounting change when identified intangibles assets rose, not all intangible assets. (Assets were identified by a record of the purchase price paid for them and consisted of things like

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trademarks, domain names, and mineral rights.) An unidentified intangible asset was acquisition goodwill. 9. Lian and Ma 2021. 10. Dell’Ariccia et al. 2017. 11. Kaoru, Daisuke, and Miho 2017. 12. Lim, Macias, and

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111 (3): 871–98. https://doi.org/10.1257/AER.20171742. Arquié, Axelle, Lilas Demmou, Guido Franco, and Irina Stefanescu. 2019. “Productivity and Finance: The Intangible Assets Channel—A Firm Level Analysis.” OECD Economics Department working paper no. 1596. https://doi.org/10.1787/d13a21b0-en. Arrow, Kenneth. 1962. “Economic Welfare and

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://doi.org/https://doi.org/10.1787/de0378f3-en. Corrado, Carol A., Jonathan E. Haskel, and Cecilia Jona-Lasinio. 2021. “Artificial Intelligence and Productivity: An. Intangible Assets Approach.” Oxford Review of Economic Policy, forthcoming. Available at https://spiral.imperial.ac.uk/bitstream/10044/1/89036/2/Innov_J_curve_17Mar21.pdf. Cowen

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.org/reporter/2017number4/value-soft-skills-labor-market#N_6_. Demmou, Lilas, Irina Stefanescu, and Axelle Arquie. 2019. “Productivity Growth and Finance: The Role of Intangible Assets-a Sector Level Analysis.” OECD Library. https://doi.org/10.1787/e26cae57-en. Demsetz, Harold. 1967. “Toward a Theory of Property Rights.” American Economic Review

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, vol. 31, edited by Martin Eichenbaum and Jonathan A. Parker, 213–63. Chicago: University of Chicago Press. Kaoru, Hosono, Daisuke Miyakawa, and Miho Takizawa. 2017. “Intangible Assets and Firms’ Liquidity Holdings: Evidence from Japan.” Research Institute of Economy, Trade and Industry discussion paper no. 17053. https://ideas.repec.org/p/eti/dpaper

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or Restricting Competition? Kalamazoo, MI: W.E. Upjohn Institute. https://doi.org/10.17848/9781429454865. Kling, Arnold, and Nick Schulz. 2009. From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Lasting Triumph over Scarcity. New York: Encounter Books. Kortum, Samuel, and Josh Lerner. 2000. “Assessing the Contribution of Venture Capital to

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Journal of Law and Economics 33 (1): 1–25. https://doi.org/10.1086/467198. Lim, Steve C., Antonio J. Macias, and Thomas Moeller. 2020. “Intangible Assets and Capital Structure.” Journal of Banking and Finance 118 (September): 105873. https://doi.org/10.1016/j.jbankfin.2020.105873. Lindberg, Erik. 2013. “From Private

Security Analysis

by Benjamin Graham and David Dodd  · 1 Jan 1962  · 1,042pp  · 266,547 words

for that. So we subtract an estimate of the company’s cost of maintaining tangible assets such as the office, plant, inventory, and equipment; and intangible assets like customer traffic and brand identity. Investment at this level, properly deployed, should keep the profits of the business in a steady state. That is

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and lower its working capital needs. Even more important, the use of GAAP required Mohawk to take significant charges against its earnings to amortize the intangible assets it had picked up in its buying spree. (The difference between what a company pays for an acquisition and the acquired company’s book value

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goes on the balance sheet as an intangible asset called “goodwill.”) These charges reduced net income but did not take any cash out of the business. All told, we calculated that Mohawk was selling

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—had been taken from earnings or surplus and deducted from the property account. The balance of $260,000,000 was set up separately as an intangible asset in the 1937 report and then written off entirely in 1938 by means of a reduction in the stated value of the common stock. Some

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. These accounting maneuvers of United Cigar Stores may be fairly described, therefore, as the unexplained inclusion in current earnings of an imaginary appreciation of an intangible asset—the asset being in reality a liability, the enhancement being related to a previous period and the proper effect of the appreciation, if it had

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anticipated this development only through a thorough analysis of the balance sheet. Another area of difficulty that Graham and Dodd recognized was the valuation of intangible assets—product portfolios, customer relationships, trained workers, brand recognition—many of which do not even appear on a firm’s balance sheet. But today available information

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reasonable accuracy and the benefits more fancifully. Investors can use these data to estimate the cost of producing intangible assets. Industry managers with substantial experience will be able to estimate such costs. More importantly, many intangible assets trade just like real property. Cable franchises, clothing brands, new drug discoveries, store chains, and even music

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is reasonably close—but lower than—the cost of reproducing its own brands. These private market values are often used by sophisticated investors to price intangible assets. Once a thorough analysis of asset and earnings power value is complete, there are three possible situations. The first is one in which the asset

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-asset value of a stock consists of the current assets alone, minus all liabilities and claims ahead of the issue. It excludes not only the intangible assets but the fixed and miscellaneous assets as well. The cash-asset value of a stock consists of the cash assets alone, minus all liabilities and

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of the later disclosures, viz.: (1) segregation from plant account in 1937 of $269,000,000 (and write-off of this amount in 1938), representing intangible assets at organization in addition to the $508,000,000 written off to 1929; (2) a charge to surplus of $270,000,000 in 1935 for

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, investing and, 50–51 Asset(s): mispricing of, capitalizing on, 621–622 realizable value of, 560–562 Asset valuation: importance placed on, 539–540 of intangible assets, 543 modern information resources for, 542 related to earnings power, 543–544 Associated Gas and Electric Company, 115, 205n, 319, 434 Associated Oil Company, 160n

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. In our opinion this is a useful concept only when the other current assets exceed all liabilities ahead of the common. 4 Judicial valuations of intangible assets (in the case of close corporations) still seem to adhere to the old concept that they are less “real” than tangible assets and thus need

J.K. Lasser's Your Income Tax 2022: For Preparing Your 2021 Tax Return

by J. K. Lasser Institute  · 21 Dec 2021

first-year expensing (42.3) or bonus depreciation (42.30) applies. IRS regulations provide safe harbors, including a “12-month” rule, for expenditures relating to intangible assets or benefits (40.3). Expenses while you are not in business. You are not allowed to deduct business expenses incurred during the time you are

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private ruling, the IRS did not allow a developer to depreciate street improvements that had been turned over to a city. The improvements were an intangible asset that improved the developer's access to its real estate projects, but this asset had an unlimited life. There was no determinable useful life because

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have created that intangible. For example, a licensee who contracts for the use of know-how may amortize capitalized costs over 15 years. The following intangible assets are not Section 197 intangibles. (1) interests in a corporation, partnership, trust, or estate; (2) interests under certain financial contracts; (3) interests in land; (4

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over the face amount of an obligation that may be deducted under the rules in 4.17. Amortization of intangibles Writing off an investment in intangible assets over a specified period; see 42.17–42.19. Amount realized A statutory term used to figure your profit or loss on a sale or

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of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax; see 5.21. Intangible assets Intangible assets that come within Section 197, such as goodwill, are amortizable over a 15-year period; see 42.17. Inter vivos or lifetime trust A trust

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, 436–37 and gain from involuntary conversion, 446 premiums for, 91, 269 reimbursements from, 434 self-employment income and, 702 tax-free exchanges of, 173 Intangible assets, 737, 750–51, 1015, 1017 Intangible drilling costs, 282–83 Intangible property, 304, 364 Intellectual property, 367 Intelligence officers, 564 Interest, 91–111. See also

J.K. Lasser's Your Income Tax 2016: For Preparing Your 2015 Tax Return

by J. K. Lasser Institute  · 19 Oct 2015

depreciation except to the extent first-year expensing applies (42.3). IRS regulations provide safe harbors, including a “12-month” rule, for expenditures relating to intangible assets or benefits (40.3). Caution Penalties and Fines Penalties or fines paid to a government agency because of a violation of any law are not

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private ruling, the IRS did not allow a developer to depreciate street improvements that had been turned over to a city. The improvements were an intangible asset that improved the developer’s access to its real estate projects, but this asset had an unlimited life. There was no determinable useful life because

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have created that intangible. For example, a licensee who contracts for the use of know-how may amortize capitalized costs over 15 years. The following intangible assets are not Section 197 intangibles. (1) interests in a corporation, partnership, trust, or estate; (2) interests under certain financial contracts; (3) interests in land; (4

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over the face amount of an obligation that may be deducted under the rules in 4.17. Amortization of intangibles. Writing off an investment in intangible assets over the projected life of the assets; see 42.18. Amount realized. A statutory term used to figure your profit or loss on a sale

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of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax; see 5.21. Intangible assets. Intangible assets that come within Section 197, such as goodwill, are amortizable over a 15-year period; see 42.17. Inter vivos or lifetime trust. A trust

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(ATAA) program Amended returns Amended U.S. Individual Income Tax Return. See Form 1040X American Opportunity credit Amortization of bond premium of computer software of intangible assets of loans from retirement plans of research and experimentation costs of start-up costs AMT. See Alternative minimum tax Annual contributions, to Roth IRAs Annual

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types chronically/terminally ill persons use of, excess living costs paid by, premiums for, proceeds from, as rental income, reimbursements from tax-free exchanges of Intangible assets Intangible drilling costs Intangible property Intellectual property Intelligence officers Interest. See also specific types abatement of, on back taxes, on bonds, on business tax deficiency

The Investopedia Guide to Wall Speak: The Terms You Need to Know to Talk Like Cramer, Think Like Soros, and Buy Like Buffett

by Jack (edited By) Guinan  · 27 Jul 2009  · 353pp  · 88,376 words

deduction of capital expenses over a specific period (usually over the asset’s life). More specifically, a method measuring the consumption of the value of intangible assets, such as a patent or a copyright. Investopedia explains Amortization If XYZ Biotech spent $30 million on a piece of medical equipment with a patent

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interchangeably, technically this is The Investopedia Guide to Wall Speak 11 incorrect because amortization refers to intangible assets, whereas depreciation refers to tangible assets. Related Terms: • Asset • Depreciation • Earnings before Interest, Taxes, Depreciation, and Amortization—EBITDA • Intangible Asset • Tangible Asset Annual Percentage Yield (APY) What Does Annual Percentage Yield (APY) Mean? The effective annual

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. Fixed assets are expected to provide benefits beyond one year: manufacturing equipment, buildings, and real estate. Related Terms: • Balance Sheet • Depreciation • Tangible Asset • Current Assets • Intangible Asset 14 The Investopedia Guide to Wall Speak Asset Allocation What Does Asset Allocation Mean? An investment strategy that aims to balance risk and reward by

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sheet; in other words, the cost of an asset minus accumulated depreciation. (2) The net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities. (3) The initial outlay for an investment. This number may be net or gross of expenses such as trading costs, sales

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minus the book value is the capital gain (or loss) from the investment. Related Terms: • Depreciation • Intrinsic Value • Price-to-Book Ratio—P/B Ratio • Intangible Asset • Net Asset Value—NAV Breakpoint What Does Breakpoint Mean? For a load mutual fund, the dollar amount for the purchase of the fund’s shares

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another company. In an acquisition, the amount paid for the company over book value usually accounts for the target firm’s intangible assets. Investopedia explains Goodwill Goodwill is seen as an intangible asset on the balance sheet because it is not a physical asset such as buildings and equipment. Goodwill typically reflects the value

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of intangible assets such as a strong brand name, good customer relations, good employee relations, and patents or proprietary technology. Related Terms: • Balance Sheet

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• Book Value • Generally Accepted Accounting Principles—GAAP • Intangible Asset • Tangible Asset Gordon Growth Model What Does Gordon Growth Model Mean? A model for determining the intrinsic value of a stock on the basis of

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subject to additional uncertainty about their future values. Related Terms: • Equity • Private Equity • Underwriter • Investment Bank • Stock 140 The Investopedia Guide to Wall Speak Intangible Asset What Does Intangible Asset Mean? A company’s nonphysical assets, such as intellectual property (items such as patents, trademarks, copyrights, and business methodologies), goodwill, and brand recognition; an

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intangible asset can be classified as either indefinite or definite. A company’s brand name is considered an indefinite asset, as it stays with the company as

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patent, with no plans for extending the agreement, it would have a limited life and would be classified as a definite asset. Investopedia explains Intangible Asset Although intangible assets do not have the obvious physical value of a factory or equipment, they can prove very valuable and can be critical to a company’s

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The Investopedia Guide to Wall Speak Net Tangible Assets What Does Net Tangible Assets Mean? Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents, and trademarks, minus all liabilities and the par value of preferred stock. Also called net asset value and book value. Investopedia

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in the company’s balance sheet. The tangible book value number is equal to the company’s total book value minus the value of any intangible assets. Intangible assets are usually assets such as patents, Share Price intellectual property, and goodwill. PTBV = Tangible Book Value per Share The ratio is calculated as shown here

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lowest price a stock realistically could be expected to trade at. Related Terms: • Book Value • Net Tangible Assets • Price-to-Book Ratio—P/B Ratio • Intangible Asset • Tangible Asset Price-Weighted Index What Does Price-Weighted Index Mean? A stock index in which each stock influences the index in proportion to its

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the latest quarter’s book value per share. Also known as the priceequity ratio. It Stock Price P/B Ratio = is calculated as Total Assets − Intangible Assets and Liabilities shown here: 232 The Investopedia Guide to Wall Speak Investopedia explains Price-to-Book Ratio (P/B Ratio) A lower P/B ratio

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such as inventories, machinery, buildings, and land. 295 296 The Investopedia Guide to Wall Speak Investopedia explains Tangible Asset This is the opposite of an intangible asset, such as a patent, a trademark, or goodwill. Whether an asset is tangible or intangible is not inherently good or bad. For example, a well

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produced solely for a trademark, at some point the company will need to have “real” physical assets to produce it. Related Terms: • Asset • Book Value • Intangible Asset • Net Tangible Assets • Price to Tangible Book Value—PTBV Tangible Net Worth What Does Tangible Net Worth Mean? A measure of the physical worth of

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a company minus any value derived from intangible assets such as copyrights, patents, and intellectual property. Tangible net worth is calculated by taking a firm’s total tangible assets and subtracting the value of

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all liabilities and intangible assets. Tangible net worth is calculated as shown here: Tangible Net Worth = Total Assets − Liabilities − Intangible Assets Investopedia explains Tangible Net Worth In personal finance, tangible net worth is the sum of all of a

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of its liabilities. Thus, it represents the liquidation proceeds a company would fetch if it shut down and sold off all its assets. Related Terms: • Intangible Assets • Net Tangible Assets • Tangible Asset • Liquidity • Net Worth Tax Deferred What Does Tax Deferred Mean? Refers to investment earnings such as interest, dividends, and capital

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customer’s strongest decision-making drivers. Companies risk losing customers if their products’ value proposition is not communicated properly to their customers. Related Terms: • Asset • Intangible Asset • Tangible Asset • Goodwill • Spinoff Value Stock What Does Value Stock Mean? A stock that trades at a lower price relative to its fundamentals (dividends, earnings

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-305 Inflation GDP. See Real gross domestic product (GDP) Initial margin. See Minimum margin Initial public offering (IPO), 42-43, 139, 293 Insurance. See Annuity Intangible assets, 10, 121, 140 Interbank rate, 140-141 Interest coverage ratio, 141 Interest rate, 141-142. See also Coupon; Yield; specific types of interest rates Interest

J.K. Lasser's Your Income Tax 2014

by J. K. Lasser  · 5 Oct 2013  · 1,845pp  · 567,850 words

depreciation except to the extent first-year expensing applies (42.3). IRS regulations provide safe harbors, including a “12-month” rule, for expenditures relating to intangible assets or benefits (40.3). - - - - - - - - - - Caution Penalties and Fines Penalties or fines paid to a government agency because of a violation of any law are not

…

private ruling, the IRS did not allow a developer to depreciate street improvements that had been turned over to a city. The improvements were an intangible asset that improved the developer’s access to its real estate projects, but this asset had an unlimited life. There was no determinable useful life because

…

have created that intangible. For example, a licensee who contracts for the use of know-how may amortize capitalized costs over 15 years. The following intangible assets are not Section 197 intangibles (1) interests in a corporation, partnership, trust, or estate; (2) interests under certain financial contracts; (3) interests in land; (4

…

over the face amount of an obligation that may be deducted under the rules in 4.17. Amortization of intangibles. Writing off an investment in intangible assets over the projected life of the assets; see 42.18. Amount realized. A statutory term used to figure your profit or loss on a sale

…

of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax; see 5.21. Intangible assets. Intangible assets that come within Section 197, such as goodwill, are amortizable over a 15-year period; see 42.17. Inter vivos or lifetime trust. A trust

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U.S. Individual Income Tax Return. See also Form 1040X American Opportunity credit American Taxpayer Relief Act Amortization of bond premium of computer software of intangible assets of loans from retirement plans of bond premium of intangibles of song rights of start-up costs AMT. See Alternative minimum tax Annual contributions, to

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types chronically/terminally ill persons use of excess living costs paid by premiums for proceeds from, as rental income reimbursements from tax-free exchanges of Intangible assets Intangible drilling costs Intangible property Intellectual property Intelligence officers Interest. See also specific types abatement of on back taxes on bonds on business tax deficiency

The Network Imperative: How to Survive and Grow in the Age of Digital Business Models

by Barry Libert and Megan Beck  · 6 Jun 2016  · 285pp  · 58,517 words

these principles as distinct options to help you make, and track, forward progress on your transformation. The ten principles are: Create digital capabilities Invest in intangible assets Actively allocate your capital Lead through co-creation Invite your customers to co-create Focus on subscriptions, not transactions Embrace the freelance movement Integrate big

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valuations 2× revenues, whereas companies that generate new intellectual capital such as software trade at valuations 5× revenues. Thus, the market values tangible assets and intangible assets differently than corporations and accountants do. The Sources of Value Are Changing As recently as 1975, 83 percent of the market value of the S

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on plants, inventory, and production. By 2015, however, the proportions had reversed. In 2015, some 84 percent of market value was now composed of intangible assets.1 Intangible assets are grounded in people. Things such as our ideas, our relationships, our advocacy, and our experiences are of great value to other people and organizations

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the physical—designing new physical products to improve human life or developing new machines and processes to improve productivity. Although we have always instinctually understood intangible assets such as loyalty, experience, and networks, we haven’t had the technology to leverage them at scale. Digital technology has made all the difference. Twenty

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output of our minds—opinions, ideas, preferences, and self-expression. Let’s look at three broad categories you should be aware of when thinking about intangible assets. PEOPLE AND THE SERVICES THEY PROVIDE. People exist in the physical world, but, despite decades of attempts, people cannot be managed like machines. You cannot

…

. Network orchestrators capitalize on the ability of their networks to grow organically as individuals spread the network among those they influence. Intangible Assets Require New Management Practices The surge of available intangible assets creates both risk and opportunity for companies. Leaders of digital network organizations realize that success now relies on their ability to

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manage intangible assets as well as, if not better than, their tangible counterparts. Unfortunately, most corporate leaders have thirty or more years of experience in managing physical assets,

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-fire communication, collaboration, and sharing with those around you. You may have much to learn or much to gain by understanding, and possibly accessing, the intangible assets that lie within your customers, suppliers, distributors, employees, investors, alumni, prospects, and competitors. CUSTOMERS WIELD GREATER POWER THAN EVER. Properly leveraged, customers can be important

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was quite a PR nightmare for a company already struggling with image problems. EMPLOYEES WANT TO CONTRIBUTE DIFFERENTLY. People are becoming more aware of the intangible assets they have to contribute, as well as the value of those assets. This is true in all spheres of life, particularly employment. People want to

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number is expected to balloon to 50 percent within the next five years.4 PHYSICAL ASSETS ARE BECOMING FINANCIAL LIABILITIES. With the increased prominence of intangible assets, tangible assets are declining proportionally. Those assets sitting on a balance sheet seem costly to maintain compared with intangibles. The major auto companies, for example

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business, which is property management and not real estate. Principle 2, Assets: From Tangible to Intangible The second principle is to move from tangible to intangible assets. On the left side of the spectrum are companies with physical products, very little intellectual capital, and low use of human capital, either internally or

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important assets of your company? What percentage are tangible? Intangible? How much capital and time, by percentage, does your firm allocate to the management of intangible assets? How much capital and time, by percentage, does your firm allocate to managing assets that exist outside the firm, such as network assets? Is there

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most valuable? Most companies fall firmly on the left side of the spectrum. After all, the digital technology that supports the productization and utilization of intangible assets, particularly network assets, has been prevalent only for the past decade. Even so, now is the time to start making a shift. Don’t Learn

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the wealthiest people are technologists. There has been a nearly complete reallocation of value and capital in the market, reflecting a new focus on digital, intangible assets. It is time to take a good look at your asset portfolio and start moving the needle to the right. PRINCIPLE 3 STRATEGY From Operator

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its customers truly love. In February 2015—following the success of The LEGO Movie, which emphasized the role of customers as contributors—Brand Finance, an intangible asset valuation consultancy, rated Lego’s brand as the most powerful in the world.3 The Value of Contribution Customer contribution and co-creation bring enormous

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right side of the spectrum, you broaden the customer value added, first by incorporating their voices as promoters and then by including their tangible and intangible assets as well. The firms that best utilize contributors interact with their customers as complete human beings, understanding not only what they want but also what

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regularly using a format that emphasizes the physical, it’s hard not to focus on physical assets exclusively. It’s also extremely difficult to measure intangible assets. For example, measuring customer sentiment was much harder in the days before social media and big data, and it’s still difficult to value definitively

…

. However, if you’re not measuring your people, ideas, and networks, you’re thwarting yourself competitively. Research by Ocean Tomo found that intangible assets now make up 84 percent of the S&P 500 market value, up from only 17 percent in 1975 (when GAAP would have been a

…

right side of the spectrum are companies that still measure all the physical stuff, usually in close to real time, but also track their external, intangible assets and use this data to improve the speed and quality of decision making. Big data is one of the hardest principles to implement because implementing

…

order to better allocate inventory and avoid stock-outs. A good place to look for big data opportunities is in your firm’s most significant intangible assets. These are often undermanaged. GET THE RIGHT TALENT. Exploiting big data requires unique skills. Merely integrating the appropriate IT systems is difficult, although your IT

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digital network age. Just as financial portfolios require diversification and balance, your organization should leverage a mix of new ideas and methods, including tangible and intangible assets, employees and freelancers, accounting and big data analytics, and so on. You can develop this degree of openness even within a single core business—by

…

assets in your organization, considering each of the four asset types. We focus on those assets that historically have not been carefully assessed or managed: intangible assets such as intellectual capital and relationships. Because highly scalable network business models usually utilize digital technologies, you will also assess your firm’s digital capability

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physical, tangible assets are. They carefully track revenues, cash, inventory, property, plant, and equipment. In contrast, intangible assets, such as human and intellectual capital, usually get less focus. Your company probably has a portfolio of intangible assets, but it’s likely you don’t fully utilize, activate, measure, or, in some cases, even view

…

and mental models were grounded firmly in physical assets and local services that were delivered by partners, Enterprise leaders began to take stock of the intangible assets they had with which they could begin to build a technology-enabled network for their key stakeholders. The executives also began to think about how

…

the asset management, loan origination, and resident management arenas of the nonprofit. CFO Craig Mellendick worked hard to assemble the firm’s complete tangible and intangible asset inventory, considering the four asset types. This was difficult work, given that the firm, in its thirty-year history, had not created a system to

…

track or measure its intangible assets. Many of the intangible assets that they would need to leverage were not clear to the team members. To move toward digital networks, the organization created a task force

…

mental model. Here are examples: Traditional thinking holds that companies need to be large-scale to reduce unit costs and stay competitive. Network thinkers leverage intangible assets and external networks to achieve very low marginal costs from the beginning. Traditional thinking advises that employees must be carefully managed to maximize output. Network

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provides a thorough view of a company’s health and viability. Network thinkers believe that a complete view comes only when you add measures of intangible assets, such as customer loyalty and employee engagement. What makes network orchestration difficult to develop is that it is not just an adjustment or “tweak” of

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“the way it’s always been done.” Now, remarkable digital advances and new network-based business models allow us to access the excess capacities and intangible assets that belong to each of us. Those organizations that create and orchestrate networks are benefiting from this core understanding, and will benefit well into tomorrow

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-us-jobs-a-year-2015-9. Principle 2, Assets 1. Ocean Tomo, press release, March 5, 2015, http://www.oceantomo.com/2015/03/04/2015-intangible-asset-market-value-study/. 2. “Study on Employee Engagement Finds 70% of Workers Don’t Need Monetary Rewards to Feel Motivated,” Badgeville, June 13, 2013, https

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restaurant-performance/#34a989da3514. 2. Ibid. 3. Ocean Tomo, press release, “Ocean Tomo Releases 2015 Annual Study of Intangible Asset Market Value,” March 5, 2015, http://www.oceantomo.com/blog/2015/03-05-ocean-tomo-2015-intangible-asset-market-value/. 4. Bradley Hope and Daniel Huang, “Firms Analyze Tweets to Gauge Stock Sentiment,” Wall Street

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analytics using (see analytics) Dickey’s Barbecue Pit example of use of, 95–96 examples of use of, 101–102 goals for using, 99–100 intangible assets as sources of, 100 as key technology, 32 move from accounting to, 99–101, 102 real-time use of, 98–99 talent for collecting, 100

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Lego Group example of interactions with, 67–68 loyalty of, 41, 65–66, 71, 76, 80, 81, 97–98, 100, 110, 194 management practices for intangible assets related to, 42–43 mismatch between boards and, 104–106 move to contributors by, 71–72 open organizations and, 116, 118 options available to, 57

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broad application and use of, 30 business models and, 22–23, 31 communication changes and, 57 examples of strategy for moving toward, 47, 49–50 intangible assets leveraged using, 41, 42, 44, 45 mentorships for, 199 need for talent with experience in, 35 network advantages using, 12 new forms of customer interactions

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, 86, 88, 90 feedback to leaders from, 92 Hollywood model (short-term, project-based work) and, 86, 87 loyalty of, 57, 97 management practices for intangible assets related to, 43 mismatch between boards and, 104–106 move to partners from, 89, 90–92, 93 multiple roles of, 93 needs and wants of

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Google and, 167–168, 183, 190 new core beliefs needed for, 196–197 in open organizations, 116, 118 Instagram, 21, 42, 60, 78, 79, 143 intangible assets big data collection from, 100 categories of, 41–42 digital technology for producing, 42, 45 importance of shifting to, 46 inventory of, 144–145 management

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–45 questions to ask about, 44–45 integration, 31, 98–99, 100 intellectual capital business model based on, 15, 132 digital networks and, 12 as intangible asset, 41–42 inventory of, 126, 144, 145, 146, 148–149, 163 market valuation related to, 40 mental model values on, 138 network orchestrators’ use of

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Lundgren, Terry, 110 Lyft, 44, 113–114, 155, 197 Macy’s, 109–110, 144 management practices big data analysis and use and, 100–101 for intangible assets, 42–44 management team business model assessment and, 131 See also leaders and leadership Mankiw, Gregory, 49 market valuation business model comparison for, 18–19

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capital allocation strategy and, 53–54 of tangible versus intangible assets, 40, 46 mass career customization, 91 Match.com, 15, 21, 41 McChrystal, Stanley, 55–56, 58 McKinsey & Company, 50, 51, 52, 106, 199 McRaney, David

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and evolution of, 192–194 as barriers in strategy shifts, 50 of boards, 106, 108 breaking habits and, 198 mentoring for, 198–199 move to intangible assets and, 46 of network orchestrators, 194–195 new stories needed for, 198 Pinpointing in PIVOT process, 137–139 reinforcing, to realize change, 197–199 mentors

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as, 135–136 examples of, 14 financial services and, 130 identifying organization’s characteristics related to, 133–135 industry sector adoption comparison for, 22–23 intangible assets and, 42, 44 leadership and, 56, 58–59, 60, 61, 62–63 market valuation comparison for, 17–19 measurement used by, 97 mental models of

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(Mankiw), 49 Project Loon, 167 Red Hat, 133 referrals, 78, 79, 175, 183 Reichheld, Fred, 65 relationships with customers data collection in, 81–82 as intangible asset, 42 leaders affected by changes in, 56–58 personalized approach to, 82 in subscription model (see subscription model) revenues, 28, 75–83 advantages of subscription

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performance comparison for, 16 PIVOT assessment of business models with, 132–133 scalability characteristics of, 16, 17 value creation comparison for, 19–20 services as intangible asset, 41 subscription model using, 80 shared vision, and co-creators, 61 sharing-economy companies, 44, 85, 113, 155, 197 show-rooming, 45 Sidecar, 44 Sitaram

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, 35 innovation and, 168 in open organizations, 117 tangible assets as financial liabilities in, 43–44 market valuation of intangible versus, 40, 46 move to intangible assets from, 44–45 Target, 76 TaskRabbit, 15, 159 Team of Teams: New Rules of Engagement for a Complex World (McChrystal), 55 technology, 27, 29–37

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business models incorporating, 30–31 embracing “digital everything” in, 30–31 essential aspect of, 29–30 importance of understanding and using, 30 management practices for intangible assets related to, 42 mentorships for, 199 move from physical to digital in, 34–37 platforms and, 33–34 questions to ask about, 35 scoring your

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The Founders: The Story of Paypal and the Entrepreneurs Who Shaped Silicon Valley

by Jimmy Soni  · 22 Feb 2022  · 505pp  · 161,581 words

The Road to Conscious Machines

by Michael Wooldridge  · 2 Nov 2018  · 346pp  · 97,890 words

The Truth Machine: The Blockchain and the Future of Everything

by Paul Vigna and Michael J. Casey  · 27 Feb 2018  · 348pp  · 97,277 words

The Costs of Connection: How Data Is Colonizing Human Life and Appropriating It for Capitalism

by Nick Couldry and Ulises A. Mejias  · 19 Aug 2019  · 458pp  · 116,832 words

The Devil's Playground: A Century of Pleasure and Profit in Times Square

by James Traub  · 1 Jan 2004  · 341pp  · 116,854 words

A Hacker's Mind: How the Powerful Bend Society's Rules, and How to Bend Them Back

by Bruce Schneier  · 7 Feb 2023  · 306pp  · 82,909 words

The Aristocracy of Talent: How Meritocracy Made the Modern World

by Adrian Wooldridge  · 2 Jun 2021  · 693pp  · 169,849 words

I.O.U.: Why Everyone Owes Everyone and No One Can Pay

by John Lanchester  · 14 Dec 2009  · 322pp  · 77,341 words

The Entrepreneurial State: Debunking Public vs. Private Sector Myths

by Mariana Mazzucato  · 1 Jan 2011  · 382pp  · 92,138 words

The Price of Time: The Real Story of Interest

by Edward Chancellor  · 15 Aug 2022  · 829pp  · 187,394 words

The Hidden Globe: How Wealth Hacks the World

by Atossa Araxia Abrahamian  · 7 Oct 2024  · 336pp  · 104,899 words

A Pelican Introduction: Basic Income

by Guy Standing  · 3 May 2017  · 307pp  · 82,680 words

A Pelican Introduction Economics: A User's Guide

by Ha-Joon Chang  · 26 May 2014  · 385pp  · 111,807 words

Culture & Empire: Digital Revolution

by Pieter Hintjens  · 11 Mar 2013  · 349pp  · 114,038 words

Bean Counters: The Triumph of the Accountants and How They Broke Capitalism

by Richard Brooks  · 23 Apr 2018  · 398pp  · 105,917 words

Mastering Ethereum: Building Smart Contracts and DApps

by Andreas M. Antonopoulos and Gavin Wood Ph. D.  · 23 Dec 2018  · 960pp  · 125,049 words

The Third Pillar: How Markets and the State Leave the Community Behind

by Raghuram Rajan  · 26 Feb 2019  · 596pp  · 163,682 words

A First-Class Catastrophe: The Road to Black Monday, the Worst Day in Wall Street History

by Diana B. Henriques  · 18 Sep 2017  · 526pp  · 144,019 words

Mastering Private Equity

by Zeisberger, Claudia,Prahl, Michael,White, Bowen, Michael Prahl and Bowen White  · 15 Jun 2017

The Future of Capitalism: Facing the New Anxieties

by Paul Collier  · 4 Dec 2018  · 310pp  · 85,995 words

The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order

by Paul Vigna and Michael J. Casey  · 27 Jan 2015  · 457pp  · 128,838 words

World Without Mind: The Existential Threat of Big Tech

by Franklin Foer  · 31 Aug 2017  · 281pp  · 71,242 words

More From Less: The Surprising Story of How We Learned to Prosper Using Fewer Resources – and What Happens Next

by Andrew McAfee  · 30 Sep 2019  · 372pp  · 94,153 words

Aerotropolis

by John D. Kasarda and Greg Lindsay  · 2 Jan 2009  · 603pp  · 182,781 words

Better, Stronger, Faster: The Myth of American Decline . . . And the Rise of a New Economy

by Daniel Gross  · 7 May 2012  · 391pp  · 97,018 words

The Website Investor: The Guide to Buying an Online Website Business for Passive Income

by Jeff Hunt  · 17 Nov 2014  · 169pp  · 43,906 words

Finding Alphas: A Quantitative Approach to Building Trading Strategies

by Igor Tulchinsky  · 30 Sep 2019  · 321pp

Deep Value

by Tobias E. Carlisle  · 19 Aug 2014

Branding Your Business: Promoting Your Business, Attracting Customers and Standing Out in the Market Place

by James Hammond  · 30 Apr 2008  · 273pp  · 21,102 words

The Thank You Economy

by Gary Vaynerchuk  · 1 Jan 2010  · 197pp  · 59,946 words

Britain Etc

by Mark Easton  · 1 Mar 2012  · 411pp  · 95,852 words

Personal Kanban: Mapping Work, Navigating Life

by Jim Benson and Tonianne Demaria Barry  · 2 Feb 2011  · 147pp  · 37,622 words

Walled Culture: How Big Content Uses Technology and the Law to Lock Down Culture and Keep Creators Poor

by Glyn Moody  · 26 Sep 2022  · 295pp  · 66,912 words

A Mathematician Plays the Stock Market

by John Allen Paulos  · 1 Jan 2003  · 295pp  · 66,824 words

Stakeholder Capitalism: A Global Economy That Works for Progress, People and Planet

by Klaus Schwab  · 7 Jan 2021  · 460pp  · 107,454 words

Schaum's Outline of Bookkeeping and Accounting, Fourth Edition (Schaum's Outlines)

by Joel Lerner and Rajul Gokarn  · 13 Sep 2009

Stakeholder Capitalism: A Global Economy That Works for Progress, People and Planet

by Klaus Schwab and Peter Vanham  · 27 Jan 2021  · 460pp  · 107,454 words

Shoe Dog

by Phil Knight  · 25 Apr 2016  · 399pp  · 122,688 words

The Little Book That Still Beats the Market

by Joel Greenblatt  · 2 Jan 2010  · 120pp  · 39,637 words

The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril

by Satyajit Das  · 9 Feb 2016  · 327pp  · 90,542 words

Big Debt Crises

by Ray Dalio  · 9 Sep 2018  · 782pp  · 187,875 words

The Glass Half-Empty: Debunking the Myth of Progress in the Twenty-First Century

by Rodrigo Aguilera  · 10 Mar 2020  · 356pp  · 106,161 words

The Bin Ladens: An Arabian Family in the American Century

by Steve Coll  · 29 Mar 2009  · 769pp  · 224,916 words

Money Moments: Simple Steps to Financial Well-Being

by Jason Butler  · 22 Nov 2017  · 139pp  · 33,246 words

Nomad Capitalist: How to Reclaim Your Freedom With Offshore Bank Accounts, Dual Citizenship, Foreign Companies, and Overseas Investments

by Andrew Henderson  · 8 Apr 2018  · 403pp  · 110,492 words

Nerds on Wall Street: Math, Machines and Wired Markets

by David J. Leinweber  · 31 Dec 2008  · 402pp  · 110,972 words

Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations

by Thomas L. Friedman  · 22 Nov 2016  · 602pp  · 177,874 words

Hedge Fund Market Wizards

by Jack D. Schwager  · 24 Apr 2012  · 272pp  · 19,172 words

Open for Business Harnessing the Power of Platform Ecosystems

by Lauren Turner Claire, Laure Claire Reillier and Benoit Reillier  · 14 Oct 2017  · 240pp  · 78,436 words

Modern Monopolies: What It Takes to Dominate the 21st Century Economy

by Alex Moazed and Nicholas L. Johnson  · 30 May 2016  · 324pp  · 89,875 words

The King of Content: Sumner Redstone's Battle for Viacom, CBS, and Everlasting Control of His Media Empire

by Keach Hagey  · 25 Jun 2018  · 499pp  · 131,113 words

Damsel in Distressed: My Life in the Golden Age of Hedge Funds

by Dominique Mielle  · 6 Sep 2021  · 195pp  · 63,455 words

Dirty Secrets How Tax Havens Destroy the Economy

by Richard Murphy  · 14 Sep 2017  · 241pp  · 63,981 words

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

by William Thorndike  · 14 Sep 2012  · 330pp  · 59,335 words

The Green New Deal: Why the Fossil Fuel Civilization Will Collapse by 2028, and the Bold Economic Plan to Save Life on Earth

by Jeremy Rifkin  · 9 Sep 2019  · 327pp  · 84,627 words

Boom and Bust: A Global History of Financial Bubbles

by William Quinn and John D. Turner  · 5 Aug 2020  · 297pp  · 108,353 words

Money Mavericks: Confessions of a Hedge Fund Manager

by Lars Kroijer  · 26 Jul 2010  · 244pp  · 79,044 words

Modernising Money: Why Our Monetary System Is Broken and How It Can Be Fixed

by Andrew Jackson (economist) and Ben Dyson (economist)  · 15 Nov 2012  · 363pp  · 107,817 words

The Making of a World City: London 1991 to 2021

by Greg Clark  · 31 Dec 2014

Digital Disconnect: How Capitalism Is Turning the Internet Against Democracy

by Robert W. McChesney  · 5 Mar 2013  · 476pp  · 125,219 words

The Global Money Markets

by Frank J. Fabozzi, Steven V. Mann and Moorad Choudhry  · 14 Jul 2002

Why Stock Markets Crash: Critical Events in Complex Financial Systems

by Didier Sornette  · 18 Nov 2002  · 442pp  · 39,064 words

The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk

by William J. Bernstein  · 12 Oct 2000

The Money Machine: How the City Works

by Philip Coggan  · 1 Jul 2009  · 253pp  · 79,214 words

The Myth of Capitalism: Monopolies and the Death of Competition

by Jonathan Tepper  · 20 Nov 2018  · 417pp  · 97,577 words

Fully Grown: Why a Stagnant Economy Is a Sign of Success

by Dietrich Vollrath  · 6 Jan 2020  · 295pp  · 90,821 words

Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, and Cheaper Than Yours (And What to Do About It)

by Salim Ismail and Yuri van Geest  · 17 Oct 2014  · 292pp  · 85,151 words

All About Asset Allocation, Second Edition

by Richard Ferri  · 11 Jul 2010