Edvinsson, Corporate Longitude
Kaplan, Norton, The Strategy- Focused
Standfield, Intangible Management
Lev, Intangibles: Management, Measurement, and
Smith, Valuation of Intellectual Property and
Framework (VRF) is a PricewaterhouseCoopers (PWC) approach for measuring and
managing corporate performance and structuring communications about that
The VRF consists of four categories of information:
– Describing the industry dynamics facing the company, including the
competitive, regulatory and macro-economic environments.
Covering the company's strategy, goals and objectives, organisational
design and governance structure.
Activities – Describing the activities and relationships that
underpin financial performance, including key non-financial areas
relating to customers, people, innovation, brands and the supply chain,
and environmental, social and ethical concerns.
Performance – Presenting the metrics used by management to monitor
financial performance, and linking them to the company's strategy. This
section should clearly detail issues such as business segmentation and
the relationship between risk and return, as well as the ability to
generate cash and reconcile internal performance measures to those
reported externally to stakeholders.
Since traditional corporate reporting models
don't meet the needs of the companies that report on their performance and
the investors and other stakeholders who use that information. PWC has
inrtoduced ValueReporting as an innovative
approach to Value Based Management designed to meet
investors’ needs for more and better information. The VRF from PWC supplements
traditional financial reporting by helping companies provide a more
detailed, transparent picture of their performance—market opportunities,
strategy, risks, intangible assets, and other important non financial value
drivers. The framework is tailored
to reflect the findings for each global industry.