The overall essay mainly depicts the significance of information value, which can be used by companies in their financial report. Intangible assets quantified by organisations mainly depict the missing information value in the equity balance sheet. The study effectively evaluates the overall method, which is been used by the companies in evaluating their intangible assets in financial report. The current valuation method, which is been used by the organisation to evaluate their intangible assets is relatively different all over the world. The overall study mainly contradicts the current method, which is been used by the companies in valuing their intangible assets as well as information.
The essay also helps in depicting the relevant impact of information at rest, which is been used by companies in preparing their financial report. The value of depreciation and the method, which is been used by the organisation in their financial project are effectively depicted. The overall valuation of depreciation is not effectively designed and is critically evaluated in the essay. Furthermore, the essay also evaluates the information in motion, which is been provided by organisation to other companies. This sharing of the overall information is mainly helpful in identifying the overall value of organisation. This sharing of information is mainly essential for measuring the overall performance of different organisations.
The overall information value mainly depicts the method used in quantifying the intangible assets, which are been used by companies in Portugal. In addition, the accounting standard used in Portugal is IFRS from 2005. Pekrun and Perry (2014) mentioned that IFRS mainly aims in reducing the overall unethical measures used by companies for inflating their overall balance sheet. Moreover, intangible assets like patented technology, computer software, databases, trade secrets, trademarks, trade dress, newspaper mastheads, internet domains, video, audiovisual material (e.g. motion pictures, television programmes) , customer lists , mortgage servicing rights, licensing, royalty, standstill agreements, import quotas, franchise agreements, customer, supplier relationships (including customer lists), and marketing rights are used by organisations in Portugal (Woodward 2014). Furthermore, the above-depicted intangible assets are mainly used by organisation in their annual report for effectively portraying the actual value of the total assets. Intangible assets valuation is mainly deemed as one of the major problems, which is faced by companies all over the world. The valuation in perspective of companies and other external evaluation is mainly different. Thus, IFRS mainly depicts in IAS 38.12 the overall intangible assets, which is listed by organisations in balance sheet. The information provided in IFRS mainly helps the companies in evaluating the overall intangible asset, which could be used by companies for portraying its actual value (Barndorff-Nielsen 2014).
IFRS mainly uses two different valuation systems for effectively listing the intangible assets in the overall balance sheet of organisations. In addition, cost model and revaluation model is mainly used by organisations in portraying the actual value of the intangible assets in their balance sheet. The use of cost model mainly allows the organisations to recognise the cost of intangible asset, less any accumulated amortisation and any accumulated impairment losses (Goh et al. 2015). The method mainly helps in portraying the actual value of the intangible assets, which could be used in the annual report. However, the information used in such method still lacks in depicting actual value of the intangible assets. The second method used by the IFRS system is the revaluation model, which is effectively used by Portugal companies in depicting actual value of their intangible assets. The revaluation model initially recognises value of the asset, which is re-valued in each fiscal year. The determination of fair value is mainly deducted by subsequent accumulated amortisation and any subsequent accumulated impairment losses (Feenstra, Li and Yu 2014). The perception value for demand of VOI is mainly increasing, which is due to the rising insight of investors. In addition, the perception value of intangible assets is mainly high seeing the scandals conducted by companies. The overall demand for effective VOI in intangible assets is mainly high, as it allows the investors to make adequate investment decisions. Moreover, it is essential for creating an adequate balance between cost of acquiring and buying, as it helps in improving overall value of demand. Thus, it is essential for deriving adequate demand, as it allows portraying correct price balance of information.
Moreover, the major strength of overall intangible assets valuation is mainly helpful in depicting the average value of assets, which could be depicted in the annual report. in addition, the method depicted by IFRS mainly allows organisation to portray the accurate and appropriate value of their tangible assets such as goodwill, which could be depicted in the annual report. The revaluation model mainly allows organisations to increase the value of predetermined intangible assets. Saunders and Brynjolfsson (2016) stated that identification of adequate valuation method of intangible assets could mainly help in improving overall value of the total assets. On the other hand, Pekrun and Perry (2014) criticises that overall valuation of the intangible assets could be valued in different perspective, which motivate companies to inflate the intangible assets value. In addition, the utilisation of the current intangible asset valuation style is mainly effective for organisation for adequately depicting in the annual report.
Furthermore, accounting rules does not allow intangible assets like brand, information and knowledge, which is the main source used in depicting future performance of the company. Moreover, tangible asset comprises of 20% of the overall value, while 80% compromise of the intangible assets of the company. In addition, the current age companies mainly use the intangible assets for boosting its share price in the capital market, which allows them to raise adequate investment for generating future profits. The use of adequate flow of information in presenting the actual value of the intangible assets is mainly helpful portraying its ability to generate higher revenue. Barndorff-Nielsen (2014) mentioned that goodwill and brand value is mainly not evaluated in the balance sheet, but is used during mergers and acquisitions.
However, there are relatively different weakness of the overall intangible valuation method, which is currently be used by Portuguese companies. The IFRS system is still improving and thus the utilisation of the overall intangible asset could be improved. Saunders and Brynjolfsson (2016) mentioned that due to the uncontrolled method companies are mainly able to inflate their overall asset valuation, which raises their performance level. However, this unethical move is mainly depicted in books, which does not represent the actual financial strength of the company. The revaluation model has mainly allowed organisations before the financial crisis of 2008 to inflate their balance sheet, which resulted in low cash formation to support their liabilities. The intangible asset valuation method used by IFRS system is still not affective, which portrays wrong financial value to investors. In this context, Goh et al. (2015) argued that governments and regulators are not able to control the unethical measures used by corporations in inflating their intangible asset for attaining solvency condition.
The use of intangible asset valuation method is mainly used by organisations for depicting the accurate financial assets available to the organisation. However, adequate flow in information value is mainly essential for stakeholders to analyse the actual financial capability of the organisation. On the other hand, Woodward (2014) stated that companies mainly use external auditors for depicting viability of their annual report. In this context, Feenstra, Li and Yu (2014) further argued that information value is mainly manipulated by organisations for attracting more investors, which could in turn help in increasing its share price. The revaluation method is a perception of the overall intangible asset value, which is determined by companies. There were many instances where companies for attaining higher solvency ratio inflated the actual values of the intangible assets. In addition, overall valuation of the intangible assets is mainly essential but seeing scandal of Lehman Brothers and other companies it is difficult to trust the valuation of intangible assets. Companies like EDP-Energias de Portugal, Galp Energia, Jeronimo Martins and many more in Portugal use the same IFRS system, which has loopholes in valuation of intangible assets. If adequate precautions are not taken into consideration then companies could inflate their balance sheet at their will to hide their debt and losses.
The misuse of information could be seen in the recent scandal conducted in Portugal by Banco Espirito Santo. The 150-year-old family business mainly had more debt and low revenues, which led to the announcement of bailout of 4.4 billion on August 2014 (Theguardian.com 2017). The fall of an old banking, company mainly indicates the overall manipulations and unethical valuation, which are been conducted by companies in Portugal. This scandal mainly portrayed the use of intangible assets mainly valued by the companies to inflate their total worth. The event of the scandal mainly portrays the weak accounting system, which is been used by companies. Saunders and Brynjolfsson (2016) argued that due to the absence of adequate measurement companies to portray a better valuation of their assets inflate tool intangible assets. Thus, it could be understood that information value is not been ethically projected by companies in the annual report. This misrepresentation of intangible assets value to investors is augmenting new scandals in Portugal and other countries. The overall misinterpretation of the information value could only be stopped if adequate measurement tool is been used by IFRS for detecting frauds conducted by companies.
Yang, Shieh and Tzeng (2013) stated that information at rest in terms of information technology defines the inactive data those are stored physically in form of digital. The digital forms of data are such that databases, spreadsheets, mobile devices, data warehouse and others. Information at rest are storing of data into disk and tape. Lee (2014) demonstrated that Information at rest is a big concern for the organization, governmental bodies and institutions due to its nature. Mobile devices are used as security protocols to secure the information at rest from any unauthorized access when there is lost and stolen of data. There is an increase in recognition when the database management system (DBMS) as well as file server is measured as an issue. When the information is left into unused storage, then there is possibility of stolen by unauthorized person from the existing network channel.
Cavusoglu et al. (2015) information can add value by use of three major concepts such as information as resource, information as attributes as well as information value. Information as resource means acquire of specific measurable cost, quantification of information consumption, use of cost accounting techniques and measurable characteristics. Information attributes are leakage of information, share of information and substitution of information. Information value varies value for information user. Information at rest is being influenced due to increase of information over time as well as reduction of it (Redlich et al. 2013). It is required to examine if the data or information is true asset or not, the value of information assets are measured. Szwed and Skrzynski (2014) argued that there is a performance gap among the appreciated as well as possible information value. In order to overcome with performance gap, it is needed to generate of information assets value by using in phonemics practices in order to corporate the data.
Padyab, Paivarinta and Harnesk (2014) demonstrated six models that help the business to label data or information at rest. The non-financial methods are intrinsic, business and performance information value.
Intrinsic information value: This particular model quantifies the quality of data by dividing the information into accuracy, comprehensiveness, as well as ease of access (Layton 2016). Continuous data protection software is used in the financial business to revolve back protection to the time accurate earlier than loss of information.
Business information value: This particular model measures the data or information by use of business processes. Both accuracy as well as comprehensiveness is evaluated, as it is appropriateness (Albakri et al. 2014). This model is used to apply in the organization for specific data types like unstructured data as well as third party data.
Performance information value: This particular model is experiential in nature, as it measures the impacts of data over time.
The financial methods are cost, economic and market information value.
Cost information value: It measures the cost of acquire of lost information. A method is used to quantify the information value based on accountants such as replacement costs (Safa, Von Solms and Furnell 2016). The information value is allocated to data by calculating of lost revenue as well as to acquire of data.
Economic information value: It measures how an informational asset is contributed to revenue of organization. Key Performance Indicator (KPI) is used to determine the revenue. Instead of look at the time-to-scale, it is required to generate of revenue by the salesperson over a time (Feng, Wang, and Li 2014). It provides a better sense towards information value.
Market information value: It measures the revenue generated by selling and renting of business data.
In the financial organization, information protection is a big concern with protecting of huge amount of sensitive and personal information. Information at rest is protected in the financial organizations by using some of the ways. Firstly, time is required to recover of information. Baskerville, Spagnoletti and Kim (2014) argued that recovery time objective (RTO) is used in information and application that help to conclude the backups needed. The data should be replicated into another location, which will be physically disconnected from the data source. Financial business should protect their data from authorized use. Crosser et al. (2013) mentioned that protecting of information at rest is a concern in today’s technology environment as people are more focused and dependent on mobile devices. As the mobile devices are portable and it is smaller size are the causes of vulnerable to loss as compared to desktop computer, therefore the password on the devices are unprotected (Silva et al. 2014).
Wang, Gupta and Rao (2015) argued that the system performs the computational process heavy lifting with accessible resources. At the point when the data is left into unused storage, then there is opportunity of stolen by unapproved individual from the current system channel. Financial institutions should be more concern from data stolen by back protection to the time accurate earlier than loss of information. Redlich and Nemzow Digital Doors (2013) demonstrated Value of Information (VOI) as the amount of decision maker would to pay for the information. VOI can certainly not be less than zero as the decision maker can ignore additional information as well as create decision when the information is not obtainable. Rausand (2013) argued that no information meeting as well as contribution activities are precious than of quantify by value of clairvoyance.
Nazareth and Choi (2015) stated that information is most vulnerable at the time of in motion. There is growing volume of digital data transmission such as the organization are forced to replace faxes conventional and mail services with faster communication channel such as email. In today’s world, around 100 million of emails are sent on daily basis. At the time when the email is sent, it takes long journey. The right tool can intercept the email when it is on the motion or path. AlHogail (2015) demonstrated strategic plan for the information security such as business processes, physical infrastructure as well as people. Return on investment (ROI) provides value to information in motion in terms of security by determining the cost of assets. It helps to forecast both impact as well as outcome of the security incidents. External person are not authorized to access information with consisting of cloud service provider. Silva et al. (2014) argued that when the cloud provider is denied to, access to the information then it prevents cloud administrators to access the information. Thirdly, there is employment of directory service infrastructure. The business is adopted directory based control as it helps to meet with observance as well as authoritarian requirements. Wang, Gupta and Rao (2015) stated that skills as well as security related strategies are two key factors, which are required in the cyber market. ROI is used in business organization in order to measure effectiveness of investments. Return on security investment (ROSI) is the benefit for security investment by concluding value of assets, which disturb security breaches, as well as cost of influence. ROSI method as well as knowledge asset model finds the total investment accepted as per risk analysis. When the organization is based on knowledge services, then it is required to value asset and information.
The policies of data access are allowed to synchronize to the implementation of directory services. The policies are set in such a way that it helps to define who will access to what data and in what situation. Finally, the monitoring and auditing process helps to access the data in the databases (Andress 2014). Monitoring process helps to access to the personal and sensitive information. Feng, Wang and Li (2014) stated that the top executive managers are focused on value as well as cost of their information security. They are focused on security cost, consequences of breaches on business and its productivity, search for cost effective method and implement of solution against breaches. Redlich et al. (2013) argued that it provides security as secured network within planned information value as well as cost. AlHogail (2015) stated that accuracy as well as quantification of information is depending on statistics as well as risk consequences.
The risk assessment method identifies the problems such as non-working of risk solutions, unwanted effect on productivity as well as finding of new vulnerabilities in the computer network. Cost is quantified to get proper information value. The internal costs like implementation, maintenance, as well as cost of support are required for the business. Productivity affects the cost when security is an issue. The research is left said that sometimes risk assessment method offers no security to the information against unauthorized data use by the insiders those have access to the key (Albakri et al. 2014). It is known that to the data, the key is considered as a protection. On other hand, data with use of key is an expensive method. Wang, Gupta and Rao (2015) argued that the system performs the computational process heavy lifting with accessible resources. Poor implementation of this method in financial organization leads to false security of data and information (Safa, Von Solms and Furnell 2016).
Information in Motion is categorized as the usage of information by the organization to generate the return, as well as the transactional usage. The information in motion provides return on investment through increase in reporting as well as analysis of data (Padyab, Paivarinta and Harnesk 2014). The information are used for transactional usage such a capturing as well as processing of information required to update of data on basic operations of the organization. Information in motion has to compete with human error, failure of network as well as insecure sharing of file. Baskerville, Spagnoletti and Kim (2014) demonstrated that in today’s business, the data are required to move outside the business applications as well as system in order to allow collaboration between the workers, users and system partners. The organization should take measurable step to protect the data from data breach.
Nazareth and Choi (2015) argued that the highest module of securing of information in motion is to manage risk. Security framework is implemented within the organization for data security. Therefore, the organization takes possible measurable step to secure information in motion. Email as well as information in motion becomes widespread media for the business organization in purpose to communicate with others. Sensitive information is being shared with the business partners as well as customers with use of email (Andress 2014). Lack of security over the sending message is a big concern for the financial institutions.
In today’s business environment, most of the organization are dependent on email as well as moving of data outside the secure environment creates protection problem of the sensitive email messages from the unauthorized users (Feng, Wang and Li 2014). The robust method to make sure that all the information is secured and the data should flow among senders and receivers freely. Email communication is exposed to loss of data since SMTP protocol does not consist of protective devices (AlHogail 2015). Guidelines on breaches are tracked back due to lack of security of email. These shortcomings are not overriding the significance of usage of email within business interaction (Rausand 2013). As additional measurable factors, privacy, integrity as well as legitimacy of the email messages are make sure. With use of secured messaging solution, sensitive as well as personal information are moved from one location to other. (Szwed and Skrzynski 2014). All the business procedures are driven by use of information in motion. When unauthorized users use the data, then it causes financial harm. Therefore, the data are exchanged freely among the business network.
It is still unknown about information value, information at rest and information in motion. In today’s research, there are no such conceptual framework is synthesized on this three information. In the future, case studies should be researched. It would help to get information on specific situation. There is possibility of deviation among the industries as well as various companies. In information value, various valuation models should be researched. The future research is possible with literature study to conclude initial contexts as well as assigns of attributes. The final step is such that valuation model is created for various valuation situations. The key research questions are:
Quantitative research approach is best for this particular study, which gives deeper understanding of the research. It analyzes and records deeper meaning of information value, information at rest and information in motion. Using this method, investigation is done with use of statistical and mathematical techniques. The main objective of this method is to expand as well as utilize of mathematical models as well as theories. This method is made with use of scientific methods such as collecting of empirical data and then analyzing those data. Mainly, it is used to gain understanding of rationales as well as opinions.
Conclusion:
It is concluded that information value is for the most part controlled by associations for drawing in more financial specialists, which could in turn help in expanding its share cost. The threats within information at rest are protected by use of federation method. Financial company should defend their data from certified use. Information in motion is occurred when the digital data is sent to other network server. The approaches are set in a manner that it characterizes who will access to what information and in what circumstance. The information is required to move outside the business applications and additionally framework with a specific end goal to permit coordinated effort between the specialists, clients, and framework accomplices. When the information is left into unused storage, then there is possibility of stolen by unauthorized person from the existing network channel. Authorized users solve the drawbacks of risk assessment method by automation process of storage as well as backup of master key. It reduces the insider attack of the information. Efficiency is maximized by making a reduction of administrative cost, which is associated with managing of keys. Information at rest is an immense concern toward the association, legislative bodies and foundations because of its nature. Keys are used to encode as well as decode the message, which comes in form of passwords, digital fingerprint and others. Finally, Quantitative research approach is used for this study that gives deeper understanding of the research.
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