In the Economy where every thing like, business model, competitive land scape , new technology, is changing so fast I wonder what is the real asset of the company ???
Amazon.com (Flipkart.com in India) started with Books - Today they are selling almost every thing under the sun. (Cuz they have customers, product range can be any thing!!! )
Sony was once upon a time highest Camera selling company - Nokia has taken over the Sony by selling Camera through Mobile Phones. (technology & convergence of everything into Mobile Phones)
From no where Snapdeal.com is selling thousands of services as discount deals per day.Suddenly perishable services providers will have queue of customers. (Large customer base, product can be any thing & every thing what customer demands or buys)
Question : What is D real assets??? Yes its not Plant & Machinery or Website or anything else. Its yr CUSTOMER base thats it. What ever is spent on customer acquisition, customer service, customer experience and customer moments of truth r the ONLY assets of the company. Brand is the only Asset.
Everything else is subject to TRANSFORMATION quickly b4 one imagines or realises.
Business Balance Sheets must incorporate or provide for changes in business eco system we live in. Or else Balance Sheet will lose its relevance in evaluation of company performance. With IFRS and much more coming up in accounting space, are accountants and auditors ready to awake to the reality of new world??
Pause for a moment & think !!!! Restructure yr Balance Sheet TODAY.