INTANGIBLE ASSETS
Rs. 400 crore of ‘cash’ that existed only on paper: Not for the first time, nor will it be the last
When something is wrong inside a company, the people running it know first. The auditors may sense it next. A regulator might confirm it years later, in an order the public finally gets to read. The ordinary shareholder sits at the very end of that queue, usually learning the truth only after the share price has already delivered its verdict. The value of reading the accounts closely is simple: It is the one way to move a little higher up that queue, while there is still time to act.
Iran's supreme leader warns US, Israel against new attacks
Iran's supreme leader has warned that any further military strikes from the US or Israel will trigger a robust retaliation. He underscored the necessity of being ready to respond at all times. As both nations prepare for upcoming elections that may reshape their diplomatic strategies, Qatar and Pakistan are stepping in as mediators to avert escalating tensions amid ongoing military activities.
Raymond’s aerospace and defence business now brings in a fifth of its income, up from 14% a year ago
Raymond reported a significant increase in revenue from its aerospace and defence business, rising 72% to ₹139 crore. The company's overall income grew by 21% to ₹683 crore, indicating strong performance. Operating profit from the aerospace sector also rose to ₹29 crore with an impressive margin of 21%. Additionally, Raymond is investing in new plants to enhance production capacity and support future growth.
Growth, value stocks set for reshuffle as S&P adopts new rules
S&P Dow Jones Indices will soon change its rules for classifying growth and value shares. The new criteria will incorporate intangible assets, forward earnings, and free cash flow instead of relying on 12-month price momentum. These changes are expected to affect approximately $375 billion of passive funds linked to the index. FTSE Russell is also considering adjustments due to the dominance of technology companies.
Warren Buffett calls out the worst accounting trick in corporate America, and the analysts who help it along
Every loan that Warren Buffett’s home business makes, it keeps. When the borrower stops paying, the loss is borne by his company rather than somebody who bought the paper years ago. Buffett contrasts that with how the last housing crisis was built, and then applies the same test to accounting, to executive pay, and to the numbers analysts repeat without checking. One question runs through all of it, and almost no annual report answers it.
India’s external financial health improves marginally in Q1 FY27 amid global headwinds
India’s external financial position improved marginally in Q1 FY27, RBI data showed. External debt rose $15.4 billion to $778.2 billion, while the debt-to-GDP ratio eased to 20.8%. Net international liabilities increased to $220.3 billion but remained below year-ago levels.
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Holding companies, NBFCs rejig assets, income to escape RBI scrutiny
Groups are restructuring NBFC and holding-company balance sheets to stay outside RBI’s regulatory definitions and avoid registration and compliance requirements, sources said. NBFCs are boosting non-financial income, while CICs are changing their asset mix.
ET Prime Special Series: Multibagger or IBC - Part 77: This auto ancillary wants to double revenue by FY30. Execution to decide
A business can diversify in two ways: Slowly, by building new capabilities internally; or quickly, by acquisitions. This supplier has chosen the second route. It has expanded from a mechanical-only portfolio to a multi-discipline platform, doubled its manufacturing footprint, and added more than four alliances. The opportunity is obvious: A broader product basket and new global orders. The risk is equally important. The new businesses still have to prove that growth can translate into durable returns.
AI boom drives intangible investment to record level: UN
Global intangible asset investments reached over $10 trillion in 2025. This growth significantly outpaced tangible investments over recent years. Since 2008, intangible investment has grown by 3.5% annually in real terms, way ahead of tangible investments, which saw annual growth of just 0.98% over the same period, the study said.
Profit on paper, loss in reality: How a routine accounting tool is used to deceive and take investors for a ride
Amortisation is a number most investors skip, but it can shape reported profit. On the surface, it looks routine: A company spreads the cost of an intangible asset over the years in which it expects to benefit from it. But that routine entry depends on management judgement, such as useful life, amortisation method, residual value, and whether the asset should have been recognised at all. These choices can make profits look higher, impairments look delayed, and asset values look stronger than business reality. This story looks at how amortisation works, how it can be misused, and what investors should check before trusting the headline earnings number.
ET Prime Special: How companies manipulate their balance sheet and take investors – and even banks – for a ride
Brands, software, development costs, and licences exist only as numbers on a page, and their valuation rests entirely on management’s assumptions. Accounting standards permit their recognition – but the conditions involve interpretation, and interpretation is precisely where manipulation hides.
Intangible assets
The Bhagavad Gita's divine qualities, like fearlessness and purity, represent early intangible assets. While financial net worth focuses on tangible assets, true richness lies in intangible strengths such as empathy and credibility. These invisible qualities, nurtured through discipline, profoundly impact happiness and peace, offering a wealth that tangible assets cannot match.
‘Economies are now shifting from tangible manufacturing to intangible investment — India is at the top of that growth’
Jonathan Haskel highlights the shift from tangible to intangible economies, driven by outsourcing and demand for diverse goods. Intangible assets enable rapid scaling, complementing traditional manufacturing. AI boosts intangible asset production efficiency, impacting equality with both amplifying and countervailing forces. India leads in intangible investment growth, reflecting its thriving tech sector.
Investments rise in data, AI, outpacing physical assets: UN
The purchase of physical assets was eclipsed last year by a surge in investment in intangible items like software, data and AI, the UN said Wednesday, describing a "fundamental shift in how economies grow and compete". "We're witnessing a fundamental shift in how economies grow and compete," WIPO chief Daren Tang said in a statement.
India outpaces major economies in growth of intangible investments
This growth underscores India's expanding role in global innovation and intellectual property. The report released by the World Intellectual Property Organisation (WIPO) marks the first time data on intangible investment is available for India.
IP valuation rules in works to boost funding; startups, MSMEs to benefit
India is eyeing a valuation framework for intellectual property to facilitate its financing through newer financial instruments. The Department for Promotion of Industry and Internal Trade (DPIIT) is planning to devise a system of valuation of IP as an intangible asset, a move that will aid businesses especially micro, small and medium enterprises, and startups with valuable IP and seeking alternative sources of raising capital.
Companies may have to pay more taxes on intangible assets
The change could affect corporations like Tata group, Mahindra Group, ICICI Bank, and HSBC Bank, among others, who have multiple subsidiaries and group companies.
Companies eligible to claim depreciation on revalued intangible assets after restructuring: Karnataka High Court
The high court said that company was eligible to claim depreciation on revalued intangible assets acquired from erstwhile partnership firm. The taxpayer was a company that had just been converted from a partnership firm. As per the details of the case the intangible assets were revalued by the partnership firm.
Walmart paid the most for Flipkart's goodwill, intangible assets
Walmart said $5 billion in Flipkart’s assets were intangibles while $13.6 billion was goodwill.
Leaders in intangible economy will do better, and laggards worse: Author Stian Westlake
Market economy, marked by intangibility, behaves differently and has profound social and economic implications. Inequality and social polarisation are rising. Real wages aren’t growing, said Westlake.
No tax on transfer of intangible assets in SABMiller-Foster's transaction: Delhi HC
In a landmark order, the court held that the income from the transfer of right, title or interest in Foster's intellectual property wasn't taxable in India.
Intangible assets are cornerstone of M&A deal success: Study
The acquisition process in today's business environment, is less about companies and their physical resources and more about the intangibles, the survey said.
Goodwill depreciation will help India Inc in acquisition
The recent Supreme Court ruling terming ‘goodwill’ as depreciable asset will give relief to India Inc for future acquisitions and on purchase of assets.
Companies undervalue people's worth: David Derain, Hay Group
People matter at all levels. Right from the CEO and where he is, how much goodwill does he want to put to change the organisation.
Intangible assets too liable to depreciation: HC
The Delhi High Court has recently upheld a tax tribunal's view that depreciation can be charged even on an intangible asset like goodwill, as it is a form of a commercial right and is used to carry out businesses effectively.
Membership in a bourse is intangible asset: SC
The Supreme Court has held that the stock exchange membership cards are "intangible assets" and a broker can claim deductions while filing income tax.
Brand valuation a key tool for business
Over the years, there has been a dramatic shift in the source of value creation from tangible to intangible assets that don't show up on the balance sheets.
India Inc ranked third globally in intangible assets
India has an estimated intangible assets component of 74%, which is just behind US (75%) and Switzerland (74%), according to GIT 2007. Technology at its best
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