A Study Of The Intangible Asset Management Practices Of Guilin Sanjin Pharmaceutical Co.,Led.

Studies on intangible assets in China and other countries usually focus on their definitions,their categories,the way of their presentation in stock market accounting statements,as well as their importance,but there are few studies on the management of intangible assets.In addition,the limited studies on the management of intangible assets lack case investigations of individual enterprises.In recent years,the competition in the market of the Chinese pharmaceudical industry manifests most prominently in the competition of the amount of intangible assets and the management of these assets.This paper emphasizes that the composition and management of a company’s intangible assets should strive to adapt to modern standards,and that in particular,goodwill,which is not categorized under intangible assets,should especially be the concern of companies’ management.This paper starts with an overview of the fundamental definitions of intangible assets of international standards,and of the current Chinese policy and precedents regarding intangible assets.It applies current theory on demarcating and managing intangible assets,and deploys statistical methods and graphic analysis,to analyze the state of current Chinese OTC(Over The Counter)pharmaceutical companies’intangible assets.Emphasis is placed on comparing the breakdown of Guilin Sanjin Pharmaceuticals and Yunan Baiyao Pharmaceuticals’ respective intangible assets and the two companies’ management policies of those assets,through an examination of their online stock accounting records from the last three years.From the analysis,it can be concluded that Guilin Sanjin Phamaceuticals is far weaker than its fellow company in the field,Yunan Baiyao Pharmaceuticals,in key areas of intangible assets such as non-patented skills,brand value,and software.Meanwhile,the author also discusses the weakness of Guilin Sanjin in terms of goodwill.It concludes with making recommendations for Guilin Sanjin Pharmaceuticals,based on the policies of leading companies in the same field,and the latest academic theories,in order to provide the company with strategies to surpass competitors in the domestic market and even the international market.The creative parts of this study lie in two perspectives of approaching intangible assets:the definite intangible assets according to the Chinese accounting policies and intangible resources which are not included in the current policies.It stressed the connection between the intangible assets shown in the accounting statements and their managements.Its data come from the stock market accounting statements,and the information from official websites of the pharmaceutical companies.Guilin Sanjin Pharmaceutical Company is one of the few pharmaceutical enterprises which did advertising on CCTV,which itself is a kind of intangible assets.However,from its annual accounting statements,we can tell there exist many problems of intangible assets for Guilin Sanjin Pharmaceuticals in terms of account,patent numbers,computer softwares and the discovery of local Chinese medicine prescriptions,all of which are weaker than those of similar pharmaceutical enterprises.The possible reasons for this could be the aging,conservative problems of Guilin Sanjin leaders who did not pay attention to science and technology.Although the degrees of education cannot decide people’s abilities to create things,people with higher degrees tend to be more experienced in doing high tech research.Guilin Sanjin is rather weak in research team,and especially the education levels of team member are lower than those of similar pharmaceutical companies,which lead to its lower status in markets for new products in spite of its few well-known brand medicine.It is obvious that Gulin Sanjin has many issues of intangible assets and the author suggests that it should improve the management of intangible assets and the structures of intangible assets.In the last part of the thesis,the author also proposed new ways of reporting intangible assets which include the current categories as well as invisible resources which are not included in current accounting categories such as goodwill.So,it can not only improve the management of intangible assets,but also can make enterprises’s whole assets more transparent.