A steady rise in the knowledge-based economy has changed how companies invest, making the quantification of intangible capital more important for investors.
Accounting standards requiring the capitalization of acquired intangibles, are comprehensive and have evolved effectively over time. However, the standards have not evolved and mostly require expensing of internally generated intangibles.
The HOLT Intangible Capital model captures in invested capital both internally generated (R&D) and acquired technology related intangibles but does not capture internally generated (SG&A) or acquired non-technology related intangibles (customer related or brands).
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