Environment

A framework for evaluating a company's performance across environmental impact, social responsibility, and corporate governance practices. ESG factors are increasingly material to valuation, investor mandates, and regulatory compliance, and intersect with intangible asset categories such as reputation and organisational capital.

A quantitative rating assessing a company's performance and risk exposure across environmental, social, and governance criteria, typically assigned by specialist rating agencies such as MSCI, Sustainalytics, and S&P Global. ESG scores increasingly influence investment decisions, cost of capital, and regulatory compliance, and are becoming a material factor in business valuations and due diligence.

The effect a brand has on how customers think and behave: their awareness of it, the associations and perceived quality they attach to it, and their loyalty to it (the Aaker and Keller models). Brand equity is a consumer and marketing concept, measured with surveys, tracking studies, retention and price premium data, and it influences pricing power, customer loyalty and market share.

The authorisation granted by a government or regulatory body permitting a company to manufacture, market, or sell a product or service in a specific jurisdiction. Regulatory approvals — including drug approvals (FDA, EMA), financial service licences (FCA, MAS), telecommunications licences, and environmental permits — are recognised as contract-based intangible assets in purchase price allocations under IFRS 3 and ASC 805 when they arise from contractual or legal rights.

A non-cash charge recorded when the carrying value of goodwill on the balance sheet exceeds its estimated recoverable amount. Goodwill impairment testing, required annually under IFRS and US GAAP, often signals that the intangible value anticipated at the time of acquisition — including synergies, customer relationships, and growth potential — has not been realised.

The quantification of the broader social, economic, and environmental impact created by an organisation's activities beyond direct financial returns. Social value encompasses outcomes such as job creation, community development, environmental improvement, health and wellbeing benefits, and reduction of inequality.

The EU regulatory framework for insurance and reinsurance companies, establishing risk-based capital requirements, governance standards, and supervisory reporting obligations. Solvency II uses a three-pillar structure: quantitative requirements (Pillar 1), governance and risk management (Pillar 2), and disclosure and transparency (Pillar 3).

A customer loyalty metric derived from a single survey question asking respondents how likely they are to recommend a company, product, or service on a scale of zero to ten. NPS is widely used as a proxy for customer relationship quality and brand strength, both of which are critical intangible assets influencing long-term enterprise value.

Brand Valuation: Methods, a Worked Example and Brand Equity vs Brand Value

Brand valuation turns a brand's market strength into a defensible number. This guide separates brand equity from brand value, works a relief from royalty example through to the pound, compares the other methods against IVS 210 and ISO 10668, and explains when a brand is recognised in the accounts.

What is the difference between amortisation and impairment of intangible assets?

Amortisation systematically allocates cost over the asset's useful life (predictable, planned). Impairment is an unplanned write-down triggered when the asset's carrying amount exceeds its recoverable amount.

How do you value a brand and what factors drive brand worth?

Brand value is driven by pricing premium, customer loyalty, and market position. Valuation methods include comparable company analysis, price premium multipliers, and income approach based on branded revenue.

What changed with ASU 2017-04 for goodwill impairment testing?

ASU 2017-04 simplified US GAAP goodwill impairment testing by eliminating Step 2 — companies now measure impairment as the excess of carrying amount over fair value of the reporting unit, without needing a hypothetical PPA.