Neil Gross claims that the value of companies has been shifting from tangible assets-the bricks and mortar-to intangible assets, such as patents, customer lists, and brands. His article, "Valuing 'Intangibles' Is a Tough Job, but It Has to Be Done," in the August 6, 2001, issue of BusinessWeek, claims that intangibles are the keys to shareholder value in today's economy, where so much value is placed on knowledge. However, Gross notes, accounting systems do little to acknowledge them. Gross complains that these intangibles don't appear on the balance sheet except in rare cases.

In response to concerns about the lack of information about intangibles in financial statements, the FASB has taken the issue under consideration. FASB research director Timothy S. Lucas is quoted in Gross's article as saying, "there are very significant measurement and definition problems."

Instructions
Choose two other students to form a group of three (or let the instructor assign you) and prepare a one-page paper that argues in favor of (or against) valuing brands (or internally generated goodwill) and classifying either as an asset on the balance sheet.