Cause and Effect

“Here, for the first time, is a comprehensive set of standards that link actual operational activities to actual accounting results as expressed in conventional financial statements - a complementary system to traditional financial reporting. The result is the long awaited system, underpinned by standards, that allows accounting performance to be explained by the value drivers (intangibles) that creates it.” Per Nikolaj Bukh PhD, BDO Professor, Department of Accounting, The Aarhus School of Business, Denmark.


Linking Accounting & Value Drivers (Intangibles)

Accounting performance, in the Intangible Economy is created from competitive intangibles – knowledge, collaboration, and leverage. Competitive intangibles create value when time is supplied to them internally by staff and when they are demanded externally from customers.

By understanding how operational processes, and practices impact the quality, productivity, and effectiveness of the supply and demand of time an organization can - for the first time - “link actual operational activities to actual accounting results as expressed in financial statements” – as Professor of Accounting Per Nikolaj Bukh stated. This process “allows accounting performance to be explained by the value drivers (intangibles) that creates it.”

Taskforce Application: The Global Cost to Value Taskforce will introduce new web-based systems to estimate the financial value of intangibles (value drivers) on the basis of current productivity, immediate performance improvement value (“low hanging fruit”), and cultural investments across all departments, divisions, and units of an organization.