The British food company Ranks Hovis McDougall (RHM) believed that some of its most valuable assets were its brand names. Yet these assets are not usually shown on the balance sheet. In 1988 RHM changed its accounting policy to include the value of brand names and thereby added £678 million (nearly $1.2 billion) to the balance sheet. Do you think that this change would facilitate comparisons between firms?
0 comments