The International Valuation Standards Committee (IVSC) has just released for comment its discussion paper Determination of Fair Value of Intangible Assets for IFRS Reporting Purposes. “As the International Financial Reporting Standards (IFRS) require increasing use of fair values for a greater range of assets and liabilities in financial accounts,” comments IVSC chairman Joseph Vella, “a clear gap in guidance is emerging.” An “Expert Group” drawn from international specialists—including Bruce Bingham (Chair) and Jay Fishman—developed the discussion paper, in particular to address brands, licenses, patents, “know-how,” customer contracts and relationships. Without guidance in these key areas, Vella says, “there is danger that valuation practitioners may take different approaches and have different interpretations of IFRS requirements.”
To read the discussion paper click here. The IVSC is soliciting comments through October 31, 2007 and expects to issue an exposure draft by the end of the year.
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