Mª Isabel Alonso de Magdaleno2 1 Department of Accounting - [email protected] 2 Department of Business Administration - [email protected] University of Oviedo (Spain) 4th International Workshop on Free/Libre/Open Source Software Friedrich Schiller University, Jena July 1-2, 2010
variables: SLOC (total, added, modified and removed), days of development, commits, numbers of developers, employeers. • EUROSTAT: Mean annual earnings in high-tech manufacturing and knowledge intensive high technology services for upper secondary and tertiary education. Valuing the Linux Kernel (1)
To put a realistic value on business (know-how) • For taxation purposes • To enable effective decision-making • To report accurately providing true and fair view Similar to other assets Not for licensing IP to others
ethical standards and international norms integrated into business model. • Perspective broader than inmediate short-term profits. • Growing support from academia, accounting profession and firms. • Humanitarism, human development, ecology …
data MARKET PRICE: needs comparable transactions INCOME: discounted cash-flow /net present value Initial booking value Revised booking value (when needed)
General Accepted Accounting Principles Based on RULES IASB International Accounting Standards Board IFRS - IAS International Financial Reporting Standards International Accounting Standards Based on PRINCIPLES
• Useful life and amortization rate, or ... basis for determining an indefinite life • Impairment losses (fair value) • Reconciliation: additions, retirements or revaluations
how do they differ from other communities Potential to improve loyalty, generate new collaborations and convert from other projects Collaboration duration How often community collaborates on development How and when members become loyal What is the frequency of contact with community Community role How community is involved in product design, production, delivery or service Community support What programs are in place to communicate and ensure community satisfaction Community success How do customers purchase rate (if applicable), downloads rate and overall satisfaction measure up with similar products
IP assets provide competitive advantage not reflected on financial statements and firm's value. • Accounting framework is based on transactions, it does not report external voluntary contributions. • There is chance to generate intangible open source assets, but additional research is needed to evaluate absence of exclusive control and not existance of previous monetary transaction. • Community Value Report may be a first step as voluntary disclosure.