TABLE OF CONTENTS The IIS4001 standard extensively supports existing accounting frameworks by assisting executives to understand how changes in financial transactions can either increase or decrease intangible costs. IIS4002 is therefore a bridge between conventional management and intangible management.
As previous chapters have shown financial transactions influence intangible transactions and vice versa:
When we are referring to costs, costs can do a wide variety of things to intangible transactions. IIS4002 deals with the potential consequences on intangible transactions of changing financial transactions.
If a financial cost is decreased, but the reduction in that cost causes a chain of events that increases intangible costs, then that cost reduction activity is said to have inferior cost quality. Twelve types of inferior cost quality interactions are identified under International Intangible Standards and are discussed in the Following sections.
This occurs when only one intangible asset is decreased due to a change in expenses. Four level 1 inferior cost quality types can result from a decrease in expenses and four level 1 inferior costs can result from an increase in expenses (Table 16.2).
| ?? | IIS4002 code | Knowledge assets | Relationship assets | Emotional assets | Time assets |
|---|---|---|---|---|---|
| ?Expense | IIS4002.C100 | ? | |||
| ? Expense | IIS4002.C101 | ? | |||
| ? Expense | IIS4002.C102 | ? | |||
| ? Expense | IIS4002.C103 | ? | |||
| ? Expense | IIS4002.C100i | ? |
