British companies are in danger of takeovers and exploitation, a new study has indicated.
Research from the Chartered Institute of Management Accountants (CIMA) found that more than $1.58 trillion (£1 trillion) of assets are totally unaccounted for, meaning British businesses are left vulnerable to underpriced bids and exploitation.
Many of the UK’s company directors and government are concerned about the value of the assets they control, which may have an impact on the government’s long-term economic plan and CIMA’s study is calling for an evaluation of Britain’s intangible assets.
Research found that, since 2012, undisclosed intangible value has risen 50 per cent to $27 trillion (£18 trillion), representing more than a third of the average firm’s enterprise value.
The report suggested that, failing to effectively account for intangibles could lead to short-term economic gains over long-term value, while undermining service-sector dominated economies including the UK.
Britain is good at creating strong brands and is a focal point for businesses that are dependent on intangible assets, including pharmaceuticals, luxury, aerospace and engineering, meaning Britain is the fourth most intangible economy behind America, Denmark and Belgium.
David Haigh, chief executive officer of Brand Finance, said: “This report challenges those leading the debate on our national economic policy. This is an issue which needs a speedy resolution to avoid further national treasures like Cadburys being left to the mercy of foreign buyers and taken over for less than they are worth.
“The issue of inaccurate intangible asset value reporting rose to prominence in the M&A boom of the 1980s.”
Mr Haigh explained that, after 30 years of debate among standard setters in the accounting sector, the next mergers and acquisitions boom is on the way.
Posted by Jon Aspinell on 27th April 2015
City of London, London
Up to £40000 per annum + good benefits
A successful IT services provider who specialise in Apple technology are looking for an experienced 2nd/3rd Line Tech...
Kingston upon Thames, Surrey
This customer is a leading tax & accountancy firm looking to hire a customer focused Corporate Tax and Personal T...
IT Manager - Kent - £40,000
Up to £40000 per annum
IT Manager - Kent - £40,000 The Ashdown Group has been engaged by a Maidstone based FMCG organisation to assist them ...
QA Automation Team Leader
Kingston upon Thames, Surrey
This client is a global leading software firm going through continued growth & expansion. They have an urgent req...
Systems Administrator - Surrey - £40,000
£32000 - £40000 per annum
Windows Systems Administrator with Networking - Weybridge, Surrey - up to £40,000. A globally diverse employer, with ...
A fast growing business unit, within a multi billion pound entertainment business, is looking for a mathematical and ...
Can HR tech ease workplace conflict?
Workplace conflict is mostly unavoidable - particularly when businesses hire strong-minded talent with big ideas. Ego...
What to prioritise in your employee experience
The candidate experience has long been valued by employers looking to attract fresh talent. Now, however, companies a...
What can HR expect in 2018?
HR departments are set to face many new challenges in 2018, from the technological to the traditional. Among the most...
From communication to drive: The importance of soft skills
Soft skills are often difficult to quantify, yet they can become an absolute necessity for your business to reach its...
Only one in three workers say their employers offer training
Just one-third of workers report that their employer offers regular training opportunities, a new poll by the Trades ...
How can you encourage an inclusive work environment?
Inclusivity in the workplace is an ideal most astute businesses strive for. Making employees feel comfortable and val...