Engineering Business Reasoning, Analytics and Intelligence Network (E-BRAIN)

2011 ◽  
pp. 232-253
Author(s):  
Annie Green
Keyword(s):  
Systems Engineering ◽  
Albert Einstein ◽  
Holistic Approach ◽  
Business Leaders ◽  
Intangible Asset ◽  
Asset Valuation ◽  
Value Drivers ◽  
Financial Factors ◽  
Asset Value ◽  
Intangible Asset Valuation

“Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius: and a lot of courage–to move in the opposite direction.”…Albert Einstein. This chapter details a performance-based theoretical model of intangible asset valuation: Engineering–Business Reasoning, Analytics and Intelligence Network (E-BRAIN). E-BRAIN’s origin started with the construction of a validated taxonomy of intangible asset value drivers: Framework of Intangible Valuation Areas (FIVA) (Green 2008). E-BRAIN is a culmination of research and practice and offers valuable insights into the emerging discipline and field of intangible assets. Using systems engineering and organization memory (cognition) as the foundation for its structure, the model identifies the path from intangible key performance indicators to performance measurement. This chapter introduces E-BRAIN as a systemic and holistic approach to intangible asset valuation that starts with a set of metrics by which business leaders can account for intangible or non-financial factors that affect value creation in the knowledge era business.

scholarly journals Application of an intangible asset valuation model using panel data for listed enterprises in Vietnam

2020 ◽  
Vol 17 (1) ◽  
pp. 304-316
Author(s):  
Quan Minh Quoc Binh ◽  
Nguyen Minh Ha ◽  
Ngo Thi Huyen Trang
Keyword(s):  
Panel Data ◽  
Building Materials ◽  
Intangible Assets ◽  
Positive Impact ◽  
Professional Services ◽  
Intangible Asset ◽  
Company Performance ◽  
Asset Valuation ◽  
Valuation Model ◽  
Intangible Asset Valuation

Intangible assets play an important role in increasing the value of companies. The performance of companies increasingly depends on ideas, information, and professional services rather than tangible assets. The question of how to accurately measure intangible assets remains a challenge for many scientists. This study aims to measure intangible assets of 396 companies listed on Vietnam’s stock market between 2010 and 2014 using the panel data technique by Yamayuchi (2014). The estimation shows that intangible assets make up a large share of total assets of companies. In addition, construction, steel, building materials, mining, and food are sectors with high intangible assets in Vietnam. The study also finds a positive impact of intangible assets on improving company performance. The findings demonstrate the importance of investing in intangible assets, such as R&D, technology, advertising, and human resources, to increase the value of a company in the future.

Accounting Discretion and Purchase Price Allocation After Acquisitions

2016 ◽  
Vol 32 (2) ◽  
pp. 241-270 ◽  
Author(s):  
Ivy Xiying Zhang ◽  
Yong Zhang
Keyword(s):  
Intangible Assets ◽  
Fair Value ◽  
Intangible Asset ◽  
Purchase Price ◽  
Asset Valuation ◽  
Economic Determinants ◽  
Sfas 142 ◽  
Reporting Incentives ◽  
Intangible Asset Valuation ◽  
Value Measurement

The recent movement in standards setting toward fair-value-based accounting beyond financial assets and liabilities calls for more empirical evidence on fair-value measurement, especially that of intangible assets. This article studies the initial valuation of goodwill and identifiable intangible assets after acquisitions. We find that the allocation of purchase price to goodwill and identifiable intangible assets is related to the economic determinants of the valuation. However, it is also significantly affected by managerial incentives arising from the differential treatments of goodwill and identifiable intangible assets under Statement of Financial Accounting Standards (SFAS) 142. The same managerial discretions are not exhibited in the purchase price allocation prior to SFAS 142, when goodwill and other intangibles are both amortized. These findings suggest that unverifiable fair value measures are associated with the underlying economics but also deviate from the true values in the presence of management reporting incentives. Further analysis suggests that external appraisers constrain managerial discretion in intangible asset valuation to an extent but do not completely eliminate it.

The Measurement and Recognition of Intellectual Capital in the Process of Accounting Convergence Trends and Patterns

2019 ◽  
pp. 1362-1372
Author(s):  
Ionica Oncioiu
Keyword(s):  
Intellectual Capital ◽  
Intangible Asset ◽  
Controversial Issues ◽  
Company Performance ◽  
Asset Valuation ◽  
Business World ◽  
National Economic ◽  
Intangible Asset Valuation ◽  
Accounting Convergence ◽  
The Relationship

The value of intellectual capital has been the main focus in the debates between international professionals and the business world for many decades. Today, this concept interferes with the international process of assessment and with the convergence of accounting. However, it is more likely for a certain period of time to develop both paradigms in parallel and then become convergent, thus solving the paradox of intangible asset valuation. Another challenge would be to extend and adapt this research to the specifics of different national economic systems, to generalize the relationship between intellectual capital and company performance and other countries and industries. This chapter analyzes the answer of the questions regarding recognition, presentation, and evaluation of intellectual capital, and also various controversial issues of this concept, as it is presented in the current project of the IASB and FASB.

Sign in / Sign up

Export Citation Format

Share Document