In the 1999-2000 session, members of Congress once again intervened, this time to place barriers in the path of proposed standards on mergers and acquisitions and the way corporations involved in them account for the value of intangible assets like good will.
Air Canada did not release net after-tax earnings figures because it is reviewing the value of intangible assets on its books, like good will, and will probably make "significant downward adjustments," the company said.
For example, WorldCom reduced the book value of hard assets of MCI by $3.4 billion, simultaneously increasing so-called good will -- the value of intangible assets like a brand name -- by the same amount.
The most recent quarter included a one-time charge of $2.3 billion to write down the book value of intangible assets.
But despite the burgeoning value of intangible assets, most financial institutions don't know how to value them, according to David Martin, an intellectual property expert.
Qwest said it would also reduce the book value of intangible business assets like its customer lists and some product technology assets by $2.7 billion.
The findings are discussed against the backdrop of the value of intangible resources.
Another involves accounting for the value of intangible assets, such as well-known brand names, trademarks and patents.
Unfortunately, the implicit assumption is that the economic value of intangible losses is zero, which many people, including, the authors would contest.
Be careful not to underestimate the value of intangible assets which, of their nature, are more difficult to identify.
