Bringing the Invisible to Light: CFA Institute Pushes for Transparency in Intangible Asset Reporting

In a recent article, Upasana Mukherjee reports that the CFA Institute Research and Policy Center is calling for a major shift in how intangible assets are treated in financial reporting. Their new report, “Investor Perspectives: Intangible Assets,” argues for a “disclosure-first” approach to bridge the growing gap between financial statements and the true drivers of corporate value. Currently, while acquired intangibles are recognized on balance sheets, internally generated ones—like R&D, software, and brand development—are largely left out.

The report’s findings are backed by investor surveys: over 70% believe key intangibles are missing from financial statements, and just 39% find current disclosures adequate. To address this, the CFA Institute proposes a phased approach, starting with more robust disclosures as a foundation for potential future recognition. As Matthew Winters, Senior Director at the Institute, notes, better disclosure is widely supported—even among those cautious about broader capitalization—because it enhances transparency without immediately inviting the risks of earnings manipulation.

The call reflects a broader push for accounting to catch up with the evolving nature of business, where intangible assets increasingly drive value creation.

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CFA report calls for better disclosure of intangible assets  

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