The way marketing features accounting statements is pretty awful. I have noted this often. Many of the issues raised are, however, applicable outside marketing. They occur with a wide range of intangible assets. Vijay Govindarajan and his colleagues, therefore, look at the providers of accounting for “digital” companies. They ask: Why Financial Statements Fail “Digital”…
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What Does Marketing Do?
What does marketing do? Many people really have little idea. Establishing what marketers do can be an important first step to a meaningful discussion. People Don’t Necessarily Understand marketing Haskel and Westlake have a great new book — Capitalism without Capital. In this they highlight a major problem that they see. The problem they note is…
Using The Language Of Business And Seeing Its Problems
Accounting, and finance more generally, is the language of business. This means marketers can’t get away from it. I recommend both using the language of business and seeing its problems. Engaging with Finance Language I think it is extremely valuable for people more broadly to understand the language of finance. Finance and accounting has challenges….
Measuring A Technological Revolution
Some have begun to make the argument that there is a technological revolution. A move towards intangible assets. How does one go about measuring a technological revolution? A Problem With Accounting Corrado and Hulten highlight a major problem in the way accounts are created. This applies to both corporate and national accounts. A basic idea…
Understanding Intuition
How can we go about understanding intuition and does it matter? Thinking Fast and Slow Daniel Kahneman’s book, Thinking Fast and Slow, has undoubtedly had a significant impact on managerial thinking. In a recent piece for the ACCA (Association of Chartered Certified Accountants) Tony Grundy, an academic and consultant, discusses the perils of cognitive bias….
Banishing Bias in Audit
Humans beings behave in ways that do not show great decision-making. Auditors are human beings. They will have bias too. How can auditors improve their behavior? How can we go about banishing bias in audit? Bias in Audit People’s decisions do not always correspond to the decisions of an optimizing robot. The same is true…
Using Non-Financial Indicators
Using non-financial indicators to predict future profits. The problem of rewarding the right things Establishing the right reward structure is extremely challenging. O’Connell and O’Sullivan aim to help in this. They tackle the problem that traditional finance/accounting measures are quite backwards looking. (They can also be manipulated to reward those who prioritize short-term, over long-term,…
Some Notes On Intangible Value
The GIFT Report (Global Intangible Financial Tracker) 2016 is a really useful piece. A collaboration by Brand Finance (a brand valuation firm), CIMA (the Chartered Institute of Management Accountants), and the IPA (Institute of Practitioners in Advertising). It contains some notes on intangible value. It highlights major factors and trends in the reporting of this…
Creating Discussions Between Marketers And Accountants
In a piece for my accounting body (ACCA) I discuss the problem of what to do in respect of brands on the balance sheet. My intention is to help foster a dialogue between (financial) accountants and marketers. I am all about creating discussions between marketers and accountants. A lot of this website speaks to that….
Why Value Marketing Efforts Even When Perspectives Differ?
Jonathan Knowles notes that different disciplines often come at brand equity from different perspectives. For the sake of clarity, he lays out three ways of looking at brand. He uses exemplars from marketing, finance, and accounting. Although, of course, no discipline is monolithic — many marketers might take the finance perspective, etc… Why value marketing…