Intangible Capital Formation

Definition

The process by which firms and economies accumulate intangible capital through investment in R&D, software development, training, brand building, and organisational design. Intangible capital formation is now the dominant form of business investment in advanced economies, yet it is only partially captured by national accounts and corporate balance sheets.

Related Terms

IAS 36 (Impairment of Assets) IAS 38 (Intangible Assets) Identified Intangible Asset IFRS 13 (Fair Value Measurement) IFRS 16 (Leases)

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