Investment in tangible assets and intellectual property products

By the end of the 20th century, economy had been developing as a classic one. As we entered thenew century and the ever changing economic environment, traditional economy is no more actual. Time hascome for the so-called knowledge economy which focuses almost exclusively on intangible assets. Amongthese, are of most value intellectual property items.Factors such as land, machines, buildings and other tangible assets are not so important anymore. Intangible assets based on knowledge, experience, creativity, innovations, technological advancement are on theforefront of economic progress and are defined as intellectual property. As such, the ownership and effectivemanagement and protection of intellectual property is vital to all companies and their success.

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Is it possible to improve methods of intellectual property valuation?

Zeszyty Teoretyczne Rachunkowości ◽

10.5604/01.3001.0014.9568 ◽

2021 ◽

Vol 45 (2) ◽

pp. 161-186

Author(s):

J Heller ◽

Daria Zlachevskaia

Keyword(s):

Intellectual Property ◽

Financial Statements ◽

Case Law ◽

Data Availability ◽

Property Market ◽

Accounting Regulation ◽

Property Valuation ◽

Valuation Model ◽

Tangible Assets ◽

Valuation Process

Purpose: The purpose of this study is to identify ways to improve or simplify the quality and accuracy of IP valuations via accounting regulation improvements. Methodology/approach: This research relies on qualitative research methods such as case law analysis and comparative research of accounting standards and approaches. Findings: Evidence from this study points towards the conclusion that financial statements currently only reflect a historic financial record of the particular business, profoundly biased by a conservative tangible assets perspective. The central thesis of this study is that it makes sense to adopt a comprehensive intellectual property valuation strategy to ascertain the specific value of the intangible assets since the comprehensive application of valuation models is likely to yield superior results to using them separately. Research limitations/implications: Although the proposed approach seeks to bring more clarity to the valuation process while simplifying the appraisal of intellectual property assets, its efficacy is subject to increased transparency, a maturing intellectual property market, and credible data availability. Originality/value: This study makes a valuable contribution to research on methods that facilitate accurate intellectual property valuation while offering an alternative valuation model which combines the strengths of individual valuation models.

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