The Brand Finance Tax Compliance December 2018 report highlights the significant inaccuracies in financial accounting for intangible assets, leading to misallocation of investment and ineffective brand management. The total value of assets on global stock markets has grown 254% over the past 17 years, reaching US$109.3 trillion. However, only US$65.6 trillion is internally understood and disclosed on balance sheets, while US$43.7 trillion is not. The report also notes that the proportion of value explained by balance sheets has decreased from 50% to 37% following the financial crisis. The report suggests that companies need to improve their brand management and minimize their tax compliance risk.
