The role of intangible assets in creating value for a public company

Subject. The specifics of managing the company's intangible assets, including those that are not reflected in the financial statements. Objectives. Substantiation of the need for an effective increase in intangible assets in order to ensure an increase in the company's value and the development of sustainable competitive advantages. Methods. In the course of the research, general scientific and special methods were applied, namely, the method of comparative analysis, visualization, methods of scientific analysis and data synthesis, and the method of expert assessments. The empirical basis of the study was made up of data from the World Bank and analytical reports from the Brand Finance consulting company. The methodological features of recognition of intangible assets in financial statements are outlined. Results. The importance of the intangible component in the creation of the company's value is indicated, which includes assets that meet both the criteria for recognition in financial accounting and those that do not meet them. It has been established that the latter provide a high valuation by market capitalization for the most expensive companies in the world. The composition of intangible assets not recognized in financial statements is specified, approaches to determining the impact of such assets on the company's value are analyzed, and limitations related to their quantification are formulated. Based on the balance sheet approach, the relationship between intangible assets and intellectual capital is presented. Conclusions. Intangible assets, which are mostly not recognized in financial statements, can be an effective tool for creating additional value for a company. In the context of digitalization, with the development of sustainable competitive advantages, their importance is growing, and the company's asset structure is becoming more virtual. However, the difficulties associated with forecasting and actually obtaining the value provided by intellectual capital, underestimating the role of intangible assets, and unwillingness to deviate from traditional business process execution algorithms are key factors hindering the steady growth of the company's fundamental value.