Answer
For IT companies such as Intel and IBM, valuable items that are not recognized on the balance sheet include:
1. Research and development (including new products yet to hit the market)
2. Intellectual capital (uniquely creative engineers and workforce in general)
3. Brand name (Intel & IBM)
However, the reason for the lack of these items in the balance sheet is affiliated with the lack of accurate estimations generated by these items.
Work Step by Step
According to the Conceptual Framework, being able to control the future benefits as well as controlling the item itself are important elements in the definition and recognition of an asset.
