... most important assets and resources of today's business, known as intangible assets or intellectual capital."(Bradford, 2002) As a result, there will be a big difference between how investors evaluate a company's value according to its balance sheets and the true value of the company. At this stage, finding a good way to account for intangibles will be the greatest challenge for accounting profession. To account for intangibles is not an easy task because "value can only be recognized on the books when an asset is bought or sold" (Millman,2002) under present accounting system. Although accounting professions have made some proposals for treating intangibles, problems are still existing. Nowadays, "more and more businesses are placing greater reliance on intellectual capital to create new competitive advantages and innovate for future growth, rather than relying on physical assets. This means that more money would be "invested" on intangibles development."(Bradford,2002) However, the accounting profession does ...

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