INTANGIBLE ASSETS

DEFINITION
Intangible assets are defined as
identifiable non-monetary assets that
cannot be seen, touched or physically
measured, which are created through time
&/or effort and that are identifiable as a
separate asset.
 Intangibles: Characteristics
 They lack physical existence
 They represent entity’s rights and privileges
 They are not financial instruments
 They are long term in nature
 They have future economic benefits but the
value of those benefits are difficult to
determine
 Specific Intangibles: Types
•Marketing - related (i.e. trademark, trade name).

•Customer - related (i.e. customer lists, customer

relationships).

•Artistic - related (i.e. copyrights).

•Contract - related (i.e. franchise, licenses or permits).

•Technology - related (i.e. product patent, process

patent).
 Valuation techniques
• Market methods

• Income methods

• Cost methods
 Intangible Assets Valuation Approach

• Background Research.

• Intangible Asset Identification.

• Select Valuation Methodology.

• Value the Intangible Assets.

Thank You