OVERVIEW

Intangible accounting performs six core tasks:

1. Identification of intangibles

2. Classification of intangibles

3. Recording of intangibles

4. Measurement of intangibles

5. Financial reporting of changes in cost quality

6. Analysis of intangible transactions

Adherence to international intangible standards relating to intangible accounting and intangible bookkeeping is made easy by using software that has been certified and accredited by the International Intangible Management Standards Institute. For a list of such software, please refer to http://www.StandardsInstitute.org/software. Such software performs the collection, categorization, measurement, valuation and reporting of intangible transactions.

INTANGIBLE ACCOUNTING REPORTS

This classification scheme allows organizations to formulate four primary intangible accounting statements:

1. Intangible balance sheet

2. Intangible income statement

3. Intangible time flow statement

4. Intangible Management statement

By 2004 it is expected that traditional accounting reports will be capturing less than 5% of the true value of the organizations for which they are created. Because 95% of the value creation process will be unaccounted for, it is essential that traditional accounting reports be supplemented with intangible accounting reports.

INTANGIBLE T-ACCOUNTS

Conventional (tangible) accounting reports are built on a bookkeeping foundation that measures and records financial transactions. Intangible accounting is built on a bookkeeping foundation that measures and records intangible transactions.

The fundamental building block of bookkeeping is the T-account. The T-account allows a bookkeeper to place data into a structured format so that it can be used by then transferred to journals, ledgers, and finally financial reports.

Intangible T-accounts record the daily flows of productive and nonproductive time in hours. As such, time, not value,...