I have stated before in my blog that I take a long period of time to studies my professional accounting qualification. However, Our first Prime Minister Tunku Abdul Rahman and third Prime Minister Tun Hussein Onn also take longer than 4 years to get their law degree. But those take 4 years or shorter to obtain their law degree unable to become Prime Minister of Malaysia but a person take longer than 4 years to obtain a degree eventually become a Prime Minister.
Similarly, one of our opposition leader Kapal Singh took 8 years to complete his law degree. However, I doubt any litigation lawyer would mentioned that they are more skillful than Kapal Singh.
While our country transform from production to knowledge economy. The long period of time I took to study my accounting qualification make me have more advantage than those who complete faster than myself. I have study a lot of changes in technology which my coursemate never has a chance to studies.
In economic, those who pass earlier never study Reganism and Thatcherism or Supply Side Economy.
In management, they study management theory while I study application of management theory. They never study strategic management, Internal appraisal, external appraisal ,PEST Analysis, Michael Porter's Competitive Strategy of a company
, Balanced Scorecard and Michael Porter's Competitive Strategy of a country.In accounting and finance. Traditional method of value a company using Net Tangible Assets (NTA) has been outdated. World richest person Bill Gates's Microsoft doesn't own any factory nor his company own many real estate or other form of tangible assets. How his company market capitalization enable him to become richest man in the world. His company assets are in intangible form ....... Copyright of software and human capital.
Thus, how valuation of company in new economy become a challenge of accounting profession.
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1 comment:
I agree that NTA is no longer relevant. With companies having to value intangibles with "fair value", I guess going forward we'll be looking at Net Assets.
Inevitably the new IFRS regime is increasing the cost of compliance and thus increase also the fee based income of the auditor. I'm not sure what is your take, but I opinion that the auditor does NOT add value to the business at all.
MIchael Porter....wow that's an old name....I can only vaguely recall his 5 forces and supply chain value.
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