The September 9, 2007, issue of the New York Timesincludes an article by Denise Caruso entitled “When Balance Sheets Collide with the New Economy.”
Instructions
Read the article and answer the following questions.
(a) What are some examples of “valuable assets” that the article says currently do not have a home on the balance sheet?
(b) What examples does the company give of the value of reputation and how it can affect a stock price?
(c) What justification does the article give for having companies report on their environmental and social responsibility, and their strategy for dealing with disasters?
(d) Are any initiatives currently being used that try to account for intangible assets that do not currently show up on the balance sheet?
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