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Valuation Overview of Intangible Asset Valuation

1. Cultivate brand awareness. Under the market economy, many people have deeply realized that "knowledge is wealth, and intellectual property is wealth." The reason why the view of knowledge economy is deeply rooted in the hearts of the people is that one of the objective evaluation criteria is its market value. Under the influence of the market economy, all walks of life are trying to find ways to excavate, develop and integrate their existing intangible assets, and reflect various added values ??through evaluation. Brands have become a powerful weapon for entities to promote themselves and compete. If protection is neglected, the coveted person will succeed.

2. Strengthen brand maintenance. Brand maintenance is more important than creation. The evaluation value of intangible assets can objectively explain the market value of the evaluation object. However, if there is a lack of maintenance of its connotation, the market value of the brand will run counter to its demand. It is worth noting that the value of intangible assets is not static and will fluctuate with market factors. For example, Coca-Cola, which has always been the world's number one brand, was valued at US$83.845 billion in 1999, US$72.5 billion in 2000, US$68.95 billion in 2001, US$69.6 billion in 2002, and US$70.45 billion in 2003.

3. Marketization requirements of knowledge economy. Intangible assets evaluation can give intangible assets a market value positioning and continuously explore and enhance their value, and then become a banner and participate in operations in capital expansion. The effective operation of intangible assets can also optimize the proportion of assets of enterprises, especially high-tech enterprises, and improve the quality of the overall assets of enterprises. On June 24, 1998, the brand value of Yuan Longping, an academician of the Chinese Academy of Engineering and the "Father of Hybrid Rice", was 100.89 billion yuan. This is also the project with the largest estimated value of intangible assets in my country so far. One year later, "Yuan Longping Agricultural High-Tech Co., Ltd." named after him was officially established in Changsha, becoming a typical example of the combination of knowledge economy and brand.

4. Necessary measures to prevent the loss of state-owned assets. With the continuous deepening of corporate mergers and acquisitions, management buyout has quietly emerged in my country's capital market. According to incomplete statistics, there are more than 100 listed companies in my country that have achieved controlling stakes through management buyouts, and more listed companies are eager to try. One of the core contents of management buyout is to scientifically evaluate the relevant intangible assets and quantify them specifically to prevent the loss of state-owned assets.

5. Provide conditions for intangible asset operating activities. Currently, intangible asset transactions are becoming more and more widespread. What contributes to the success of intangible asset transactions is not only its technical level and the economic benefits created after application, but also fair transaction prices. It is also one of the extremely important factors. Transactions of intangible assets do not have reference market prices like tangible assets. As an intermediary, the intangible assets evaluation agency can make a reasonable and fair evaluation based on the comprehensive factors of the intangible assets, providing a price basis for intangible assets business transactions. If the price of intangible assets can be well adapted to the economic and social benefits it brings, it will promote the management of intangible assets, which can promote the transformation of knowledge products into actual productivity and improve the effectiveness of intangible assets. However, in terms of the unit value and evaluation scope of intangible assets, there is a big gap between China and the world. Some well-known domestic and foreign companies with a history of hundreds or even hundreds of years have not yet evaluated the true value of their trademarks and trade names, which directly affects these business activities and competitiveness.

6. To provide an economic basis for protecting intangible assets and safeguarding the rights and interests of parties, the evaluation of state-owned intangible assets will help improve school-run enterprises’ awareness of the importance of intangible assets, thereby strengthening the management of intangible assets and preventing state-owned The loss of assets protects national interests and promotes the preservation and appreciation of intangible assets. In addition, with the development of market economy, the role of intangible assets in enterprise production is becoming more and more important. The resulting disputes are also increasing, and there are more and more cases involving various intangible assets. The determination of the amount of losses and compensation for intangible asset owners who have been infringed must also be resolved through intangible asset evaluation. Intangible asset evaluation is A necessary means to resolve intangible asset rights disputes and infringements fairly and properly.

7. Provide the basis and prerequisites for changes in property rights and joint-stock system transformation. Asset evaluation must be carried out for changes in property rights and joint-stock system transformation such as discounting of assets of school-run enterprises into shares, mergers and alliances, formation of Sino-foreign joint ventures, etc. Intangible assets are part of an enterprise's total assets, and their evaluation is an important part of enterprise asset evaluation that cannot be ignored.

The data provided by the appraisal provide a basis for the valuation and accounting of joint-stock enterprises, enterprises with investment in intangible assets and enterprises that revalue intangible assets. Some listed companies only care about immediate interests or are affected by other factors and do not evaluate the intangible assets of the enterprise. The net asset value per share is low and cannot attract a wide range of investors, so the stock price is low. Underestimating, misvaluing or underestimating intangible assets when establishing a Sino-foreign joint venture is also one of the important channels for the loss of state-owned intangible assets. 1. Utilize intangible assets pledge loans (pledge loans for trademark rights, patents, copyrights, etc.), industrial and commercial registration, capital increase and share expansion, capital participation, licensing, transfer, leasing and contracting, liquidation and auction, etc.;

2. Improve brand awareness, expand corporate strength, and enhance cohesion;

3. Enterprises use intangible assets to operate in line with international standards and then enter the international market;

4. The need to protect intellectual property rights provides companies with a basis for claims against counterfeiting, infringement, and litigation;

5. Through the evaluation of intangible assets, we can find out the family background and provide operators with management information to rationally allocate resources;

6. Project financing, joint ventures and cooperation, corporate mergers, acquisitions, and investment attraction.

7. Intangible assets can increase the registered capital and can account for 70% of the registered capital.

8. Intangible assets can also be amortized before tax over a specified period of time. 1. Management purpose: to find out the family background, quantitative management, cohesion, and outreach strength

2. Asset operation: pricing transfer, licensing, anti-counterfeiting claims, and pledged loans

3. , Capital operation: capital participation, capital increase and share expansion, equity swap, joint venture and cooperation