Intangible Asset Finance Society Calls for New Ways to Measure Corporate Performance

CLYDE, N.Y.--(BUSINESS WIRE)--"Top executives and economic policymakers must increase their understanding of the value that business processes and other non-balance sheet assets add to companies' value." So said Ken Jarboe, president, Athena Alliance, a Washington, DC-based non-profit organization devoted to public education and research on the emerging global information economy. Mr. Jarboe made his remarks occurred at the Intangible Asset Finance Society's (IAFS's) Annual Meeting, Reputational Perils: The Intangible Value of Safe, Secure and Ethical Supply Chains, at the Savannah Dhu Conference Center in Clyde, NY, near Syracuse.

Non-balance sheet assets include innovation, ethics, resilience, quality, safety, security and sustainability. The two off- balance assets that featured most prominently in the discussions were security and integrity.

Daniel Prieto, vice president and senior fellow for homeland security and intelligence, IBM Global Leadership Initiative (NYSE:IBM), believes that, in our complex and interdependent global economy, companies should go beyond protecting physical assets. Mr. Prieto believes that, because cascading effects can create extreme consequences, "small actors and individual events" are stretching companies' boundaries of responsibility, which is increasing the risks they face in the course of doing business.

With the loss of confidence in many mortgage lenders that people thought were immune to adversity, such as Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE), at least one financial services executive fears a backlash against using non-balance sheet assets to help measure corporate performance.

"The current situation could lead to a rush to trust only the things we can see and touch," said Marc Lucier, director, Deutsche Bank (NYSE:DB). "Rather than ignore unpleasant realities, companies need to implement systems that prevent recurrences and position themselves for future success. Paying attention to non-balance sheet assets is a step in that direction."

According to Nir Kossovsky, MD, executive secretary, IAFS , "We are proud to break new ground to change how top and senior corporate executives, boards of directors and financial analysts measure corporate performance and the value of these vital non- balance sheet assets."

Mr. Jarboe, of the Athena Alliance, added that executives should educate federal elected officials and their staffs about the effects of non-balance sheet assets on corporate performance to help ensure the creation of laws and regulations that strengthen the competitiveness of American companies.

Conference sponsors include Athena Alliance, Carpenter Moore (NSDAQ: NDAQ), Center of Capital Market Competitiveness (U.S. Chamber of Commerce), Destiny USA, Steel City Re, Deutsche Bank, Milken Institute and Pittsburgh Technology Council.

The Annual Meeting continues today with sessions on the need for companies to develop and implement strategies that create value by improving supply chain reliability.

About the Intangible Asset Finance Society

The IAFS engages in education, standards development and advocacy to promote the use of intangible asset financial management best practices. The Society publishes scholarly articles in Intellectual Asset Management magazine. The IAFS is based in Pittsburgh, PA.

For more information, contact Nir Kossovsky at 412.661.7086, e-mail nkossovsky@steelcityre.com or visit www.iafinance.org