WICI consults on communicating value creation from intangibles

  • Document (dk gray) Image

10 Jun 2020

The World Intellectual Capital/Assets Initiative (WICI) has published an exposure draft of 'Setting a New Agenda for CFOs — Understanding the role of Intangibles in Value Creation'. The guidance is aimed at facilitating CFOs and other finance professionals to manage and report intangibles in the context of their organisation’s value creation.

The document offers the chapters 'Finding Value in Changing Landscape', 'Delivering Value — managing intangibles', 'Communicating value creation from Intangibles', 'Tools', and 'Experience & Cases', all of which are supported by examples, cases and interviews.

The chapter on communicating value creation from intangibles looks at two main aspects:

Why should companies report value creation from intangibles?

  • Supporting and evidencing strategic positioning
  • Building confidence and relationships with key stakeholders
  • Differentiating from competitors
  • Demonstrating progress on existing commitments and values

And what should companies report on?

  • Unique value creation mechanism
  • Strategic intangible assets
  • Strategy, mission, vision, values
  • Strategy for the future business, development and utilisation of intangible assets
  • Governance
  • Risks and opportunities related to intangibles
  • Business environment

The WICI website offers a press release and access to the draft guidance. Comments on the guidelines are invited by 31 August 2020.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.