Question :
Most accounting professionals would agree that the accounting profession has developed effective tools for calculating and reporting events involving tangible assets. Most might also agree that the profession has miles to travel to report as efficiently on events involving intangible assets. Examples of intangible assets are patents developed rather than purchased; supplier and customer relationships; and employee knowledge, skills, and abilities.
Consider that the United States-based manufacturing company implemented a BPR that resulted in the layoff of 20 percent of production workers.
How would his layoff impact the company's intangible assets?
How would the BPR event be reflected in the company's financial statements?
Given your answer to do you think the financial reports reflect all important effects of the layoffs? Describe.