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Valuation of intangible assets

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Page 1: Valuation of intangible assets

PURPOSES AND USES OF INTANGIBLE ASSETS VALUATION

Intangible assets are defined as identifiable nonphysically measured. Intangibles assets have no physical existence and are incapable of being perceived by the sense of touch, as an incorporeal, immaterial

Intangible assets are categorized under different heads for the purposes of identification and classification. A common categorization of intangible assets follows.

1. Marketing related intangible assets. Includes trademarks,

2. Technology related. Includes patents, technical know

3. Artistic related. Includes copyrights, literary works, musical compositions

4. Data processing related. Includes computer software, software copyr

5. Engineering related. Includes industrial designs, product patents

6. Contract related. Includes license agreements, non compete agreements

7. Goodwill related. Includes professional goodwill, celebrity goodwill

Intangible assets are created over a period of time and attain a value for themselves. Intangible assets are an integral part of the business and hold a lot of value in the valuation of the business. One of the reasons intangible assets are so important isassets and ultimately generates revenue out of them, like books, software products, patents and inventions can be converted to tangible assets.

Intangible asset valuations and economic analyses are performed for notational purposes. Valuation of intangible assets is required to be done for various purposes. Purposes and uses of intangible asset valuation can be broadly categorized into the following heads;

1. Financial reporting

2. Infringement damages

3. Sales transaction support

4. Transfer pricing

5. Licensing

6. Equity raising

7. Strategic alliances

8. Collateral-based financing

9. Transaction pricing and structuring, for the sale, purchase o

10. Financing securitization and collateralization

11. Taxation planning and compliance

12. Bankruptcy and reorganizational analysis

13. Litigation support and dispute resolution

14. Corporate planning and governance

15. Acquisitions, mergers and sales of businesses, licensing

PURPOSES AND USES OF INTANGIBLE ASSETS VALUATION

Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. Intangibles assets have no physical existence and are incapable of being perceived by the sense of touch, as an incorporeal, immaterial

Intangible assets are categorized under different heads for the purposes of identification and classification. A common categorization of intangible assets follows.

Marketing related intangible assets. Includes trademarks, trade names, logos, brand names

Technology related. Includes patents, technical know-how

Artistic related. Includes copyrights, literary works, musical compositions

Data processing related. Includes computer software, software copyr

Engineering related. Includes industrial designs, product patents

Contract related. Includes license agreements, non compete agreements

Goodwill related. Includes professional goodwill, celebrity goodwill

Intangible assets are created over a period of time and attain a value for themselves. Intangible assets are an integral part of the business and hold a lot of value in the valuation of the business. One of the reasons intangible assets are so important is because they can be converted to tangible assets and ultimately generates revenue out of them, like books, software products, patents and inventions can be converted to tangible assets.

Intangible asset valuations and economic analyses are performed for notational purposes. Valuation of intangible assets is required to be done for various purposes. Purposes and uses of intangible asset valuation can be broadly categorized into the following

Infringement damages

Sales transaction support

based financing

Transaction pricing and structuring, for the sale, purchase o

Financing securitization and collateralization

Taxation planning and compliance

Bankruptcy and reorganizational analysis

Litigation support and dispute resolution

Corporate planning and governance

Acquisitions, mergers and sales of businesses, licensing

PURPOSES AND USES OF INTANGIBLE ASSETS VALUATION

monetary assets that cannot be seen, touched or physically measured. Intangibles assets have no physical existence and are incapable of being perceived by the sense of touch, as an incorporeal, immaterial and impalpable thing.

Intangible assets are categorized under different heads for the purposes of identification and classification. A common categorization of intangible assets follows.

trade names, logos, brand names

Artistic related. Includes copyrights, literary works, musical compositions

Data processing related. Includes computer software, software copyrights

Engineering related. Includes industrial designs, product patents

Contract related. Includes license agreements, non compete agreements

Goodwill related. Includes professional goodwill, celebrity goodwill

Intangible assets are created over a period of time and attain a value for themselves. Intangible assets are an integral part of the business and hold a lot of value in the valuation of the business.

because they can be converted to tangible assets and ultimately generates revenue out of them, like books, software products, patents and

Intangible asset valuations and economic analyses are performed for transactional as well as notational purposes. Valuation of intangible assets is required to be done for various purposes. Purposes and uses of intangible asset valuation can be broadly categorized into the following

Transaction pricing and structuring, for the sale, purchase or license of the intangible asset

Advocates & Legal ConsultantsAdvocates & Legal ConsultantsAdvocates & Legal ConsultantsAdvocates & Legal Consultants

monetary assets that cannot be seen, touched or physically measured. Intangibles assets have no physical existence and are incapable of being

Intangible assets are categorized under different heads for the purposes of identification and

Intangible assets are created over a period of time and attain a value for themselves. Intangible assets are an integral part of the business and hold a lot of value in the valuation of the business.

because they can be converted to tangible assets and ultimately generates revenue out of them, like books, software products, patents and

transactional as well as notational purposes. Valuation of intangible assets is required to be done for various purposes. Purposes and uses of intangible asset valuation can be broadly categorized into the following

Advocates & Legal ConsultantsAdvocates & Legal ConsultantsAdvocates & Legal ConsultantsAdvocates & Legal Consultants

Page 2: Valuation of intangible assets

16. For bankruptcy and reorganization

17. Purchases and sales of intangible assets

18. For the purposes of tax

19. Financial reporting

Valuation of intangible asset is done for various purposes. When a business entity goes under a merger and acquisition deal or sells off part of whole of its business, the other party wants to assess the value of the assets of the company. The value of intangible assets forms an integral part of these deals. Assessment of intangible assets is also done for raising of funds for the business. It acts as a property against which the company can raise funds from the bank and other institutes. In a legal case for infringement of IP by other party valuation of assets is required to assess the value of compensation and damages demanded from the other party. Goodwill is another form of intangible asset. Goodwill cannot be separately termed as a property but goodwill earned by a business enterprise over the period of time does value and is assessed for licensing, M&A and other deals. Valuation of intangible assets is also required to be done for the purposes of tax.