Abstract
In the past, tangible assets (manufacturing assets, land, buildings and financial assets) were regarded as the main source of business value. However, economic and market conditions in the last quarter of the twentieth century have shown that a company’s value is not made up of its tangibles alone. Both markets and academia have recognized that intangibles are one of the main sources of value creation, and a factor in explaining the gap between some companies’ market and book (or accounting) values.
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Notes
- 1.
See Chap. 4.
- 2.
IAS 36—impairment tests.
- 3.
- 4.
International Accounting Standards—International Financial Reporting Standards.
- 5.
IAS 38—intangible assets.
- 6.
This is done annually through an impairment test (IAS 36).
- 7.
For any merger or acquisition before 2004, the brand value at the time of the operation is included in the goodwill.
- 8.
See income split method in this chapter.
- 9.
For example, www.royaltysource.com.
- 10.
J-N Kapferer, The New Strategic Brand Management, Kogan Page Ltd. 2011, 5th edition.
- 11.
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García, M.R. (2017). Financial Valuation of Luxury Brands. In: Rigaud-Lacresse, E., Pini, F. (eds) New Luxury Management. Palgrave Advances in Luxury. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-41727-1_6
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