Intangible Assets: A non monetary asset that manifests itself by its economic properties. It does not have physical substances but grants rights and privileges to its owner that usually generate income.
Intangible Asset is a broad term that refer to any set of rights or nonphysical resource that provide an advantage to the owner.
This definition of Intangible Assets in general includes both intellectual property and goodwill.
Types of Intangible Assets
An intangible asset can be either identifiable or unidentifiable.
Basis of Intangible Assets Valuation
Purposes of Intangible Assets Valuation
Valuation Approaches and Methods
All intangible asset valuation methods fall within one of the three valuation approaches.
Intangible asset becomes valuable only when it is incorporated with value generating factors, thereby, any attempt to separate the intangible asset itself from the mentioned factors will make the intangible asset possess no value. Value of some types of intangible asset depends largely on companys strategic marketing plan, companys customer base, companys artistic creativity, concessions that the company is engaged in or companys technological progress.
Intangible Assets Valuation
Valuation Method of Intangible Assets is a calculation of capitalization rate and risk factors of the intangible asset through income approach method.
There are 5 factors to take into calculation for discount rate.
Relating Risk Factors