Intangible assets assessment methods

Intangible asset assessment methods are directly related to the assessment results. In the practice of intangible asset assessment in my country, large errors are often caused by the inability to use scientific methods. It is necessary to conduct in-depth research on the evaluation methods of various types of intangible assets, learn from advanced foreign experience, and innovate based on the specific practice of my country's evaluation work. There are three main methods for calculating intangible assets: market price method, income method and cost method.

1. Market value method. This law determines the value of intangible assets based on market transactions and is applicable to patents, trademarks, copyrights, etc. Generally, the license fee for the above-mentioned intangible assets is calculated as a percentage of revenue based on the agreement reached by the parties to the transaction. The main problem with this law is that since most intangible assets do not have market prices, some intangible assets are unique and it is difficult to determine the transaction price. Secondly, intangible assets are generally traded together with other assets, and it is difficult to separate their value separately. .

2. Income method. This method calculates the value of intangible assets based on their economic benefits or the present value of future cash flows. Such as goodwill, franchised agency, etc. The key to this method is how to determine the appropriate discount rate or capitalization rate. This method also has the problem of difficulty in separating the economic benefits of a certain intangible asset. In addition, when a certain technology is still in the early development stage, its intangible assets may not have economic benefits, so this method cannot be used for calculation.

3. Cost method. This method calculates the cost required to replace or reconstruct a certain type of intangible asset. It is applicable to the calculation of the value of intangible assets that can be replaced. It can also estimate the economic benefits brought by the intangible assets to reduce production costs, reduce raw material consumption or prices, reduce waste and more efficient use of equipment, thereby evaluating this The value of some intangible assets. However, due to factors such as whether a certain intangible asset can obtain alternative technologies or the ability to develop alternative technologies, as well as the product life cycle, it is difficult to determine the economic benefits of intangible assets, which limits the application of this method.

Intangible assets evaluation procedures

In accordance with national laws and regulations, and in compliance with the principles of science, objectivity, seriousness and responsibility, the procedures for carrying out intangible asset evaluations are as follows:

1. Signing: Before the assessment, the customer needs to sign an agreement with the company, reach an agreement on the assessment scope, purpose, base date, charges, time for delivery of the assessment report, etc., formally sign the agreement, and jointly supervise the implementation.

2. Form a project team: Depending on the size and difficulty of the evaluation project, a project evaluation team composed of industry experts, evaluation experts, professionals in economics, law, technology, society, accounting and other fields will be formed to implement For project evaluation, the project team implements an expert responsibility system.

3. On-the-spot inspection: The project team conducts on-site inspections in the enterprise to understand the development and changes of the enterprise, economic benefits, market prospects, technology life cycle, equipment technology, economic status, and check various legal documents and accounting statements , listen to reports from middle-level and above leading cadres.

4. Market research: Use modern means to conduct surveys among consumer groups in different regions and with different economic incomes. Some assessments also require international market research to obtain first-hand information for the assessment.

5. Design mathematical models: Adopt internationally accepted theories and methods, design mathematical models based on the actual situation of the enterprise being evaluated, scientifically determine the values ??of various parameters, and conduct multiple computer calculations.

6. Discussion by the expert committee: The expert advisory committee will demonstrate the evaluation results. More than two-thirds of the expert advisory committee must be present, and industry experts must be present. Only if more than half of the experts pass by secret vote can the evaluation results be approved. pass.

7. Notify the customer of the evaluation results: Notify the customer of the evaluation results, and the customer pays the evaluation fee.

8. Print the evaluation report and send the evaluation report to the customer.

The necessity of evaluating intangible assets

In terms of the current environment in which Chinese enterprises are located, the evaluation of intangible assets has the following three levels of significance:

1. Find out the family situation and improve corporate asset management. The evaluation of intangible assets for the purpose of financial reporting has become an important part of corporate asset management.

For the evaluation, management and application of tangible assets, the enterprise itself has formed a relatively scientific and effective system over the years, and its asset volume has been fully revealed in relevant financial reports. However, the managers of the enterprise do not know exactly what intangible assets an enterprise has and what their value is, forming a blind spot in asset management. Only by fully revealing the true value of this part of the assets can we be aware of it, and then change passive management to active management and standardize it to ensure the integrity of corporate assets.

2. Provide management information and decision-making basis for operators. The essence of the value of intangible assets is the cultivation and development of intangible assets, the innovation ability and profitability of the enterprise, the utilization status and utilization efficiency and effect of the enterprise's resources, the potential of the enterprise's sustainable development, the level of enterprise management, etc. The assessment process is a process of asset inventory. The focus is to discover the problems and deficiencies that exist in various aspects of the company's asset management, operating processes, capital structure, corporate efficiency and profitability, etc., and strive to solve or provide constructive opinions and suggestions for the company. It is helpful for operators to make wise decisions on intangible asset investment, rationally allocate resources, and reduce investment waste.

(2) The need for brand building

3. Motivate and educate employees and enhance corporate cohesion. In the era of brand marketing, companies must not only convey the health status and development trends of the brand to people outside the company, but more importantly, convey brand information to employees at all levels within the company, cultivate employees' loyalty to the company, and achieve a goal of uniting people's hearts. Purpose.

4. The dissemination of intangible asset value is an effective means to expand and improve the influence of an enterprise and demonstrate its development strength. As the issue of corporate image has gradually attracted attention from the business community, the promotion of famous brands and trademarks has become an important way for enterprises to go international. Therefore, the evaluation and promotion of trademarks, brands and other assets are important means to strengthen corporate image and demonstrate development strength.

5. The valuation of intangible assets is conducive to the expansion of sales channels and the expansion of the franchise system. In the process of developing franchisees, understanding the value of intangible assets can enable the alliance owner company to have evidence to rely on when introducing its own brand, so that potential franchisees can have a more accurate basis for judging the company, and it can also allow potential franchisees to see the company. The development potential of the company can enhance franchise confidence, so intangible asset evaluation is particularly important for franchise owners.

6. Provide value basis for compensation for intangible asset infringement. In the administrative protection of intellectual property rights, especially in infringement litigation, the evaluation of trademark rights and patent rights is conducive to quantifying the losses caused by infringement and determining the amount of compensation, providing a basis for claims for rights holders in combating counterfeiting and safeguarding rights, and is conducive to safeguarding the legality of enterprises. rights and interests.

7. It will greatly promote enterprises to develop provincial famous trademarks, Chinese famous brands, and strengthen legal protection of intellectual property rights.

(3) The need for capital operation

8. Use intangible assets to increase capital and expand shares, invest externally, and set prices to buy shares to achieve low-cost expansion. To ensure the rationality of investment behavior, an enterprise must have a correct assessment of the current value of the enterprise's assets. It has become common for enterprises to use intangible assets such as technology and trademark rights as investments in various economic activities such as restructuring, joint ventures, cooperation, alliances, mergers, reorganizations, and listings. For investors, investing in intangible assets can reduce cash expenditures and obtain greater investment returns with less cash investment; it can expand the production and operation scale of goods or services using registered trademarks, further enhance the value of trademarks, and strengthen the enterprise. The market competitiveness of a product or service. The results of the evaluation are not only an important basis for investment negotiations between investors and investee units, but also an objective standard for the invested unit to determine the recorded value of its intangible assets.

9. The need for asset transactions. In cases of transfer, auction, licensing, etc., the value of intangible assets should be evaluated to provide an objective and fair value basis for both parties to the transaction.