HOW LONG ARE YOU GOING TO WAIT BEFORE YOU KNOW ITS TOO LATE?
What is your Business worth in five years ? Do you harvest or scale up business units with future revenue opportunities generated from patents, technological innovations, or strategic assets like people and processes? Where an (RFID chip, Iphone acts as a game changer ) or a deregulation of Oil prices can ramp up your costs by as much as 20% in the next 24 months are you being left behind and taken by surprise?
The advent of new accounting standards , IFRS, is here to stay and gives significant "early bird" advantages to Organizations willing to make the cut towards greater accountability and transparency in traditionally out of balance sheets intangible assets.
Suddenly its no longer cosmetic and no longer the advantage of the privileged few "fortune 1000" enjoying ad hoc valuations in multiples of their PE. With over a 100 countries signing up to these new accounting standards it has become important to understand the implications and state of most national accounting standards boards.
With the scramble on to integrate the new and yet undefined framework for implementing these standards into Tax laws, Corporate law the next two years are going to at least increase the burden of multiple accounting systems and reports to Auditors and corporates alike.
Questions that need to be addressed are many, e.g. The treatment of a range of assets and liabilities and Intangibles assets. Issues arise whether assets (land) should be charged at costs or (fair) market values, What do the tax authorities charge; cost price or "fair value" ? Similarly, if multiple rates of depreciation apply to a machinery e.g. A Ship's various units will have variable life spans and depreciation rates.
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