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Why Value Intangible Assets ?
There are a number of situations in which intangible assets and intellectual property may need to be quantified economically. These include:
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Acquisitions | particularly where a significant portion of the value of the acquisition is not in tangible assets. There is often a requirement that financial statements properly reflect assets acquired |
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Bankruptcy | where claims may be made as to the significant value of intangibles |
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Tax Assessments |
covering a range of taxation considerations including capital gains tax, stamp duty etc. |
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Financing | where intellectual property can be used as loan collateral or as the basis for a financing structure |
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Income Taxes | where foreign subsidiaries of parent companies gain income using intellectual property of the parent |
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Infringement Lawsuits | where value must be attributed as a result of infringement of intellectual property |
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Joint Ventures | where contributions to the venture may be a mix of tangible and intangible assets |
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Licensing Arrangements | where the relationship between existing intangibles and future income is determined |
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Marital Dissolutions | where businesses that are part of marital property often possess proprietary intangible assets |
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Property Taxes | where there can be confusion between the relative contributions of real property value and intangible asset value |
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Management Support and Presentation | enabling an assessment of a company's return on assets and the performance of management, strengthening balance sheet presentations and advising shareholders of the financial position of the company including "hidden" assets. |