Global News: IVSC issues final paper on intangibles

BVWireIssue #264-2
September 18, 2024

global business valuation
intangible property, intangible valuation, international business valuation, international valuation standards council (IVSC)

There is no easy answer to the problem of having corporate balance sheets more closely match economic reality, but increased disclosures of intangibles (particularly internally generated intangibles) will help, points out a Perspective Paper from the International Valuation Standards Council (IVSC). This is the final paper in a series that focuses on the valuation of intangible assets. The paper recaps the prior papers, examines new valuation methodologies, cites some relevant research, and makes some observations about possible steps moving forward. Future discussions will be focused on lowering thresholds for “identifiability” and possibly moving toward the recognition of internally generated intangibles. In the meantime, increased disclosures are a good interim solution, but they will face pushback from companies. They will gripe about the cost and effort of additional reporting and the possible disclosure of sensitive information. The paper is available if you click here.
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