Companies thrive when they create real economic value for their shareholders. For this, they invest resources with the objective of obtaining rates of return that exceed the cost of their capital. However, to assess the return on invested capital, it is necessary to consider knowledge assets, which are of high value to companies. Studies show that the value of knowledge assets has increased in the top 500 companies in the United States.
Currently, the battle for ownership of information is more intense than any other, as it is understood that this is the raw material in the decision-making process. Unfortunately, accounting is not able to manage knowledge assets, as it is based on the transaction principle, that is, it accounts only for what was acquired through a transaction, such as purchase and sale. Meanwhile, knowledge assets, which add high value, may never have been acquired, as is the case with private labels.
We agree that the evaluation of knowledge assets is a complex challenge, and that science still does not offer completely accurate and reliable models. However, we believe that current science offers several techniques and methods that can be used to value these assets with a reasonable degree of accuracy.
The valuation of organizations often involves the use of discounted cash flow valuation approaches, comparative market analysis, option pricing models, among other techniques. Although these approaches can be influenced by uncertainties and subjectivities, it is possible to mitigate these factors using sensitive analysis, simulations, and other methods of risk analysis.
Knowledge assets are extremely important in the knowledge age and often represent the greatest value of companies. However, these assets are generally not measured in companies’ financial statements due to legal and accounting restrictions.
It is important to remember that companies must maintain accounting records based on commercial legislation. The balance sheet is one of the accounting statements responsible for demonstrating in a synthetic way the financial situation of companies, as well as the facts inherent to them.
However, the scientific and legal assumptions used in the measurement of asset valuation and its variations are not suitable for companies in the knowledge age. Most of these assumptions emerged in the industrial era and are outdated due to the technological development that has taken place in recent decades.
Therefore, the evaluation of knowledge assets is a crucial process for making business decisions and must be carried out by highly qualified and experienced professionals, who have a deep knowledge of the company and the sector in which it operates. In addition, the assessment of knowledge assets is a dynamic process that involves constant updating of information and continuous assessment of the impact of changes in the business environment.
The concern with measuring the wealth created has evolved, starting to highlight not only the potential for generating future benefits, but also other equity factors, such as technology, intellectual capital, and the market. It is important to point out that the measurement of created wealth has always been an object of interest to civilizations , but its evolution over time increases its potential to support decision-making processes.
Thus, the idea of asset measurement evolved to include factors that were not fully addressed by organizational systems before and that can influence asset valuation. It is important to highlight that knowledge is one of the main competitive tools in the era we live in, and human capital is the starting point for all innovations.