“What is value? Generations of business and accounting students have been taught that value lies in assets. Assets in turn are everything owned by a company that has money value. Assets come in four forms, three of them precise and measurable, and the fourth imprecise and essentially unmeasurable until it is sold. The first two types of assets are current, meaning they are likely to be consumed or sold within the next year, such as inventories and accounts receivable; and fixed (or long-life), which, in the form plant, equipment and property, have a useful life of more than a year. Fixed assets, because their value is used up in increments over multiple financial reporting periods, are depreciated, that is, their cost is spread out in a reasonable and systematic way across successive balance sheets. The third type of asset is investments, such as a company’s holdings in stocks and bonds. Though this type of asset is typically more volatile than the first two, it nevertheless can be measured in a systematic way through market value and other metrics. The fourth asset type, however, is far more problematic. Intangible assets are those that have no physical existence but are still of value to the company. Typically they are long term, and just as typically they cannot accurately be valued until the company is sold. What are these hidden values? They appear to take three basic forms: human capital, structural capital, and customer capital."

"Capital has a number of related meanings in economics, finance and accounting. In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. Initially, it is assumed here that other styles of capital, e.g. physical capital, can be acquired with money or financial capital, so there is little need here for any further analysis of the latter. So below, the word "capital" is short-hand for "real capital" or "capital goods" or means of production. Also to be ignored will be the problems of aggregating capital and the capital controversy."

balanced scorecard

In 1992, Robert S. Kaplan and David Norton introduced the balanced scorecard (BSC), a concept for measuring a company's activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business. The key new element is focusing not only on financial outcomes but also on the human issues that drive those outcomes, so that organizations focus on the future and act in their long-term best interest. The strategic management system forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, process, and employee perspectives. Measures are often indicators of future performance. Since the original concept was introduced, balanced scorecards have become a fertile field of theory and research, and many practitioners have diverted from the original Kaplan & Norton articles.

1. relative worth, merit, or importance: the value of a college education; the value of a queen in chess. 2. monetary or material worth, as in commerce or trade: This piece of land has greatly increased in value. 3. the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange. 4. equivalent worth or return in money, material, services, etc.: to give value for value received. 5. estimated or assigned worth; valuation: a painting with a current value of $500,000. 6. denomination, as of a monetary issue or a postage stamp. 7. Mathematics. a. magnitude; quantity; number represented by a figure, symbol, or the like: the value of an angle; the value of x; the value of a sum. b. a point in the range of a function; a point in the range corresponding to a given point in the domain of a function: The value of x 2 at 2 is 4. 8. import or meaning; force; significance: the value of a word. 9. liking or affection; favorable regard. 10. values, Sociology. the ideals, customs, institutions, etc., of a society toward which the people of the group have an affective regard. These values may be positive, as cleanliness, freedom, or education, or negative, as cruelty, crime, or blasphemy. 11. Ethics. any object or quality desirable as a means or as an end in itself. 12. Fine Arts. a. degree of lightness or darkness in a color. b. the relation of light and shade in a painting, drawing, or the like. 13. Music. the relative length or duration of a tone signified by a note. 14. values, Mining. the marketable portions of an orebody. 15. Phonetics. a. quality. b. the phonetic equivalent of a letter, as the sound of a in hat, sang, etc. –verb (used with object) 16. to calculate or reckon the monetary value of; give a specified material or financial value to; assess; appraise: to value their assets. 17. to consider with respect to worth, excellence, usefulness, or importance. 18. to regard or esteem highly: He values her friendship. [Origin: 1275–1325; ME < OF, n. use of fem. ptp. (cf. valuta) of valoir < L valére to be worth] —Synonyms 1. utility. Value, worth imply intrinsic excellence or desirability. Value is that quality of anything which renders it desirable or useful: the value of sunlight or good books. Worth implies esp. spiritual qualities of mind and character, or moral excellence: Few knew her true worth. 3. cost, price. 18. prize. See appreciate. Dictionary.com Unabridged (v 1.1) Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.

Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006. American Heritage Dictionary - Cite This Source val·ue (val'yoo) Pronunciation Key n. An amount, as of goods, services, or money, considered to be a fair and suitable equivalent for something else; a fair price or return. Monetary or material worth: the fluctuating value of gold and silver. Worth in usefulness or importance to the possessor; utility or merit: the value of an education. tr.v. val·ued, val·u·ing, val·ues To determine or estimate the worth or value of; appraise. To regard highly; esteem. See Synonyms at appreciate. To rate according to relative estimate of worth or desirability; evaluate: valued health above money. To assign a value to (a unit of currency, for example).

WordNet - noun 3. the amount (of money or goods or services) that is considered to be a fair equivalent for something else; "he tried to estimate the value of the produce at normal prices"