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Baruch Lev is Professor of write up and Finance at New York University, gruesome School of Business, the Director of the Vincent C. Ross Institute for Accounting Research and the jut for Research on Intangibles1. He is an internationally recognized safe for accounting and reporting turns related to Intangible Assets, working almost with such institutions as the U.S. Securities and Exchange Commission and the Financial Accounting Standards Board, OECD, the European Union, and the Brookings Institution (see also at the bottom of this rogue: Levs Congressional testimony in the Enron case, February 6, 2002). This is a shortened translation of an interview with Baruch Lev from the book Intangible Assets or the Art to comprise a leak Value2 by Juergen Daum (April 2002). This shortened version has been make in the German Newsletter Controlling & Finance, issue 02/2002. Juergen Daum: Why is traditional accounting in our knowledge and info found economy an outdated model ? Baruch Lev: One of the major problems with todays accounting systems is, that they are still based on transactions, such as sales. In the current, knowledge-based economy practically of the dictate creation or destruction precedes, sometimes by years, the occurrence of transactions.

The successful development of a drug creates goodish value, but actual transactions, such as sales, may take years to materialize. Until then, the accounting system does not register whatsoever value created in contrast to the investments made into R&D, which are fully expensed. This difference, between how the accounting system is handling value created and is handling investments into value creation, is the major reason for the growing disjuncture between market values and financial information. Juergen Daum: Why do companies not account for their intangible assets ? Baruch Lev: Intangible assets, such as new discoveries like drugs, software programs, brands or unique organisational design and... If you want to get a full essay, order it on our website: Ordercustompaper.com

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