Business Power: Creating New Wealth from IP Assets

Chapter 12. Intellectual Property’s Impact on Corporate Financial Management

CHRISTOPHER J. LEISNER, CPA, CMC

As a result of a robust IP management initiative, the CFO and the company will recognize that if IP is better managed, the balance sheet improves and profits are increased.

Key Points to Look For

• SFAS 141 and 142 standards are driving changes that require the CFO to make determinations about the value of IP and other intangible assets annually.

• The analyst and investment communities are demanding more insight into IP value impact.

• The CFO already has much of the information needed to develop an IP-financial management capability readily accessible from traditional business documentation.

• The value of the company’s IP assets can be developed systematically by determining what the company’s assets consist of in terms of their value to the owner as well as their value to other companies.

• Those companies that do communicate IP value to the investment community will likely find favor, but those that lag in developing and reporting will more likely be punished as “laggards.”

Combining IP Asset Management with Traditional Tangible Asset Management Standards

The landscape of IP management is shifting dramatically, especially as it relates to the new responsibilities required of the CFO. Recent AICPA pronouncements regarding intangible assets are one concern the CFO must take into account, ...