Toronto, Ontario (6 December 2021)
Peter Ott, CPA, CA, CBV, a Chartered Business Valuator at Valuation Research Group (VRG), was quoted in CPA Ontario’s latest report on intangible assets.
The report, titled “You Can’t Touch This: The intangible assets debate,” explores the rise of the intangible economy and professional services providers’ role in reporting on intangible assets.
According to CPA Ontario, while economic growth in advanced economies is increasingly being driven by intangible assets, the accounting profession and standard setters have yet to come to a consensus on how to best adapt its rules to match this growth.
Ott argues that accountants and auditors have a primary role in ensuring the accuracy and quality of the financial data reported on by companies. He questions how this role will change when asked to report separately on internally generated intangible assets. “That process requires the assessment of financial forecasts and plans and decisions about future risks and growth rates. Without third-party verifiable information, how do companies reliably report on this? The risk in having accountants report on this forecast information through valuing intangible assets is that readers of financial statements stop believing the information that accountants normally report on, and then where would we be?”
The full report can be read on the CPA Ontario website.
Valuation Research Group (VRG) is a global valuation practice that furnishes expert and independent opinions of value for solvency, fairness, business enterprises, intangible assets, capital stock, equity interests, real estate, and fixed assets. VRG has a network of over 1,400 professionals located in offices throughout continental Europe and the United Kingdom, Brazil, China, India, Mexico, Canada, Argentina, Australia, and the United States. The Canada-based practice operates as Peter Ott & Associates.