December 2003

On Valuing Intangibles

I read with interest the article “Valuing Intangible Assets” in the October 2003 CPA Journal. The writers correctly point out that some companies will benefit from reporting certain intangibles on their balance sheet, especially if such assets can be verified and measured.

In a research paper I had written for Pace University in 2001 (, I proposed a tiered reporting model whereby the current GAAP balance sheet elements are “padded” by the intangible-related proposed element:

This reporting model would preserve current GAAP while enhancing applicable companies’ reporting to investors. Of course, auditors and accountants should be familiar with the content of intangible-related elements to ensure that they are properly recognized.

Yigal Rechtman, CITP, CPA
Person & Company, CPAs, New York

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