Joff Wild at the IAM Magazine blog passes along this important tidbit:
Comments have been invited on two draft documents with a view to making the valuation of intangibles more transparent and consistent. Issued by the International Valuation Standards Council, Revised Guidance Note no 4, entitled Valuation of Intangible Assets, identifies and defines the principal approaches and methods used in intangible asset valuation, with the objective of reducing the diversity of terminology, and making valuation reports more comprehensible to users worldwide. The new Guidance Note no 16, Valuation of Intangible Assets for IFRS Reporting Purposes, draws the attention of valuers, and those commissioning valuations for use in financial statements, to the principal accounting requirements of the International Financial Reporting Standards (IFRS) under which the valuations are prepared and provides guidance on the appropriate valuation response.
If these Guidance Notes can move us closer toward a standardized valuation methodology, then we will have taken a very important step to regularizing the use of intangible in the financial system.
Comments are due by April 30.
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