Creating Value with Nonfinancials

It is so important in any organization that management accountants understand their intangibles and their relationship to value creation. In today’s business climate, it is also imperative that management accountants understand the supposed dichotomy between non-financial metrics and financial value. The adoption of integrated reporting and sustainability metrics has generally lagged in the United States, and it can be difficult to see beyond financial accounting to the real value being created in organizations. A Japanese pharmaceuticals company, Eisai Co., Ltd., has been successful in showing a clear link between intangibles and value, leading them to long-term value creation.

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