©
Copyright 1978-2007 BAL Consulting
P/L™. All rights reserved.
Crisis
in Company Valuation
•Book Value Accounting
still based on Luca Pacioli’s 1494 Summa de
Arithmetica, Geometrica, Proportioni et
Proportionalita treatise on double-entry bookkeeping also
known as the Italian Method.
•Inability
to account for Intangibles later known as Knowledge Capital recognized since 1970s
as a major problem.
•Goodwill introduced as an accounting fudge to explain why you paid too much. Goodwill is amortized whilst Knowledge Capital appreciates!