Corrado-Hulten-Sichel (CHS) Framework

The accumulated knowledge, processes, systems, and culture that enable a firm to operate effectively. Organisational capital includes management practices, internal processes, proprietary methodologies, quality systems, and the institutional knowledge that persists beyond individual employees.

A measure of productivity that captures the effects of technology, innovation, management quality, and other intangible factors that increase output beyond what can be explained by the quantity of labour and capital inputs used. TFP is calculated as GVA divided by a weighted combination of labour and capital inputs.

The International Accounting Standard governing the recognition, measurement, and disclosure of intangible assets. IAS 38 requires that an intangible asset be identifiable, controlled by the entity, and expected to generate future economic benefits.

Systematic investigation and experimentation aimed at creating new products, services, or processes, or significantly improving existing ones. R&D expenditure is one of the largest categories of intangible asset investment and is a key driver of innovation capital and future competitiveness.

A professional who studies, analyses, and interprets the production, distribution, and consumption of goods and services. Economists apply quantitative and qualitative methods to understand economic behaviour at both micro and macro levels, informing policy decisions, business strategy, and investment analysis.

The practice of quantifying an organisation's innovation inputs, processes, outputs, and outcomes to assess the effectiveness of innovation investment and guide strategic decision-making. Innovation measurement encompasses metrics such as R&D spending as a percentage of revenue, patent filing rates, new product revenue share, time-to-market for new offerings, and return on innovation investment.

The system of statistical methods used to measure a country's overall economic activity, including Gross Domestic Product (GDP), Gross National Income (GNI), and related aggregates. National income accounting provides the framework for tracking economic output, income distribution, saving, investment, and international trade flows.

The Organisation for Economic Co-operation and Development — an intergovernmental body of 38 member countries committed to promoting policies that improve economic and social well-being. The OECD plays a pivotal role in intangible asset and productivity research, producing influential studies on the measurement and economic impact of intangible investment, knowledge-based capital, and innovation.

AI and IAS 38: When Can You Capitalise AI Development Costs?

IAS 38 sets six criteria for capitalising development costs, but applying them to AI projects is fraught with ambiguity. This article maps each criterion to AI development realities and provides practical guidance for CFOs and accountants navigating the recognition question.

How does the Asset Valuator in Opagio Intangibles work?

The Asset Valuator in Opagio Intangibles values one asset at a time. You choose a method, such as Relief from Royalty, MPEEM or the Cost Approach, enter its inputs, and it calculates a fair value estimate.

What is a 100-day plan?

A 100-day plan is the structured programme an acquirer follows in the first roughly three months after completion to stabilise the business, retain its people and customers, and begin realising the synergies that justified the deal.

How do I reduce founder dependency before selling?

Document the decisions and relationships only you hold, distribute customer contacts across your team, build a management layer, and withdraw from day-to-day operations in stages so the business demonstrably runs without you.