Intangible Assets: The future of business

495 Words | 4 Min Read

In today's fast-paced business environment, the value of intangible assets has never been more pronounced. Recent events, such as the standoff between TikTok and the US government, underscore the critical role that intangibles play in shaping the future of business. As companies grapple with the decision to protect their proprietary algorithms or risk exclusion from lucrative markets, the significance of intangible assets becomes abundantly clear. Join us as we explore the evolving landscape of intangible assets and their implications for accounting, finance, and business students alike.

Table of Contents

• Intangible Assets: The future of business

• Current Affairs

  • TikTok Banned In USA: CEO Refuses To Sell In Order …

• Extra Tip/Suggestion

  • Accounting Creator Of The Week: Francois du Preez

  • Share The Journal Entry

Current Affairs

TikTok Banned In USA: CEO Refuses To Sell In Order To Protect Algorithm

TikTok the most expansive social media in the current trend of society has recently been faced with a posing decision to protect its position in an American market. President of the USA recently signed that ByteDance( The company owning TikTok) must sell TikTok in its entirety, including the algorithm, to an American owned company or else it will be banned within the USA.

Following this ultimatum ByteDance stated that they have no plans to sell TikTok to an American owned company if all legal actions fail to prevent the ban in order to protect the exclusivity of the TikTok algorithm.

The American market is one of the most active and lucrative for any business, so the reluctance to sell the company on the merit that the algorithm(an intangible asset would be lost) shows the direction that the current business landscape is headed.

There are multiple factors contributing to the increasing value of intangible assets, however I believe the most prominent are:

1. The importance of collecting data.

2. The advancement of technology.

3. Emerging Artificial Intelligences.

As business become more integrated and adapted to technology, their ability to collect and thus process data about their customers becomes abundantly more powerful and knowing everything your customer wants, when they want it and how they want it gives a razor sharp competitive edge.

Notice how all the above mentioned factors are all intangible: data, AI models, software for the technology. This goes to show that accounting, finance, business and really any students should grab a foothold in sharpening their understanding of intangible assets, how to acquire them effectively, how to develop them, what makes a good intangible asset and their relevant treatment in regards to IAS 38.

Extra Tip/Suggestion

Accounting Creator Of The Week: Francois du Preez

Francois is a University Of Pretoria alumni currently completing his articles in The United Kingdom. He has an extremely useful TikTok account which he uses to spread practical tips for accounting students as well as his work/life adventures as an emerging professional in the Chartered Accounting space.

Go show him some love!

@francois_dupreez_xcix

UnderGrad Tips…eventually😂 #ca #tips #student

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