Chapter 3
Long-Term Assets
151
CT-2 (
6
)
Since intangible assets have no physical existence, they cannot be seen. Shareholders may
question showing an amount on the balance sheet for an “invisible” asset. Companies have
staff with many years of experience who would be difficult to replace, and are therefore
deemed valuable. However, the value of such staff is not reflected in the financial statements.
Discuss.
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