ABSTRACT
Intangible assets have long played a major role in business strategy and marketing. The accounting profession in its publication defines an intangible asset as one that is ‘non-monetary in nature and without physical substance.’ In the UK, consideration of intangible assets is dominated by the uncertainty over the accounting treatment of goodwill. The Companies Act 1985 requires separate disclosure for intangible fixed assets, but does not define them and extant accounting standards are vague and incomplete. Disclosing brands on the balance sheet make published accounts more commercially ‘realistic’ and to provide information which might be of benefit to readers and for strategic decision-making for management. Brandbuilding requires a long-term focus and at present, brand investments are treated as costs in the accounting books. The balance sheet’s role is to give a snapshot of the financial position of a company - the equity invested and how they are tied up.
