Intangible Asset: Technology
The corporate Balance Sheet has a new asset item called Intangible Asset: Technology. It gives a tech company a fair market value and allows it to raise funds for continued R&D by issuing new shares.
How the value is determined
Part A — technology at or above the market top
If the company possesses a technology equal to or higher than the current top technology on the market — the “Top Tech.” column on the Corporate Detail Report, Technology page — the calculation is:
Value = <a constant amount> × (the company's tech level − top tech) / top techPart B — new inventions not yet on the market
Value = <a constant amount> × (number of years it takes to invent the product using a single R&D unit)These values decline or vanish once other companies also start selling products using the new technology.
