Today, I was invited to Canberra (Australia’s Capital) to lecture to an audience of over 1000 accountants in the National Convention Centre.
I discussed a number of themes including the need for a BVS–a much better way of looking at how we value the assets of a company.
Amazingly, most of today’s investment and business decisions are still based on an invention that has not yet been updated for over 500 years!
In Venice in 1494, a Franciscan monk and Leonardo Da Vinci collaborator, Fra Luca Pacioli, invented double-entry bookkeeping and published the world’s first textbook on accounting principles and practice. Ever since, this has been the basis of investment decisions. Double-entry bookkeeping shows a map of how money and goods flow through a business.
But it has a major flaw. It is blind to the Intellectual Capital of the business, most of which walks out the door at 5pm every afternoon.
For more on this subject click through to What is the Real Value of a Business? …