Intangible Asset: Technology

The company Balance Sheet now has a new asset item called “Intangible Asset: Technology”

This gives the tech company a fair market value and allows it to raise funds for continued R&D efforts via issuing new issues.

How the value of Intangible Asset: Technology is determined:

Part A) 

If the company possesses a technology equal to or higher than the current top technology on the market (as seen on the “Top Tech.” column on the Corporate Detail Report – Technology page), then the calculation is as follows:

Value of Intangible Asset: Technology = <a constant amount> x (The company’s tech level – top tech) / top tech

Part B) 

For new inventions that have not yet been introduced to the market as products:

Value of Intangible Asset: Technology = <a constant amount> x (number of years it takes to invent the product using a single R&D unit)

These values will decline or vanish when other companies also started selling products using the new technology.

Intangible Asset: Technology

The balance sheet showing a company with $28.8 million in the asset account “Intangible Asset: Technology