7-05 Why do we need ICGI? Intangible Asset

7-05 Why do we need ICGI? Intangible Asset

Here are 5 key points summarized from the transcript:
1. There's a shift from accounting to accountability, with challenges in areas like closing stock valuation.
2. The introduction of IAS 38 in 1998 defined intangible assets as non-monetary assets without physical substance, creating challenges for auditors.
3. Intangible assets worth $4.1 trillion were not included in United States statistics, highlighting the scale of the issue.
4. The valuation and auditing of intangible assets remain a significant problem, as seen in recent cases like SVB and FTX.
5. Large companies in India have substantial intangible assets (around 10,000 crores each), and the Institute of Corporate Governance (ICGI) may be better positioned than auditors to address this issue.