IVSC aims to ‘demystify’ valuation of intangibles
The adoption of International Financial Reporting Standards (IFRS) has greatly increased the need for improved information and consistency when valuing intangibles, especially in the context of cross-border mergers and acquisitions, joint ventures, and other investment arrangements. However, too often a disconnect results between “the book value of companies and the real market value of their intangible assets,” says Chris Thorne, President of the International Valuation Standards Council (IVSC) in a new release. To assist practitioners and to “help demystify the whole process so that it becomes more comprehensible to investors around the world,” the IVSC has just published its updated Guidance Note 4 on valuing intangible assets, including brands, customer relationships, IP, and goodwill.
The IVSC is also collaborating with The Appraisal Foundation on developing best practice guidance in specific areas where such authority is currently lacking, including the valuation of customer relationships and the identification and valuation of control premiums.
2 Responses to “IVSC aims to ‘demystify’ valuation of intangibles”
Comments
Read below or add a comment...
The aim to ‘demystify’ valuation of intangibles is a good one. However, the limited overview of valuation of intangibles in the guide does little to demystify the process, especially for the layman. I would qualify it as a good practitioner’s overview.
We’ll see what comes out of the project!