Fair Value

The International Financial Reporting Standard that defines fair value, establishes a framework for measuring it, and requires disclosures about fair value measurements. IFRS 13 introduces a three-level hierarchy based on observable market inputs and is foundational to the valuation of intangible assets in financial reporting.

The US GAAP standard that defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under compulsion to transact, and both having reasonable knowledge of the relevant facts. Fair market value is the standard used in most asset valuation contexts.

The International Accounting Standard governing the recognition, measurement, and disclosure of intangible assets. IAS 38 requires that an intangible asset be identifiable, controlled by the entity, and expected to generate future economic benefits.

The amount obtainable from the sale of an asset or cash generating unit in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal. Under IAS 36, it is one of two measures used to determine the recoverable amount for impairment testing.

The International Financial Reporting Standard governing the accounting treatment of mergers and acquisitions. IFRS 3 requires acquirers to identify and separately recognise intangible assets at fair value as part of purchase price allocation, which often reveals significant off-balance-sheet value in areas such as customer relationships, technology, and brand.

The present value of the future cash flows expected to be derived from an asset or cash generating unit, calculated using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Under IAS 36, value in use is one of two measures (alongside fair value less costs of disposal) used to determine recoverable amount for impairment testing.

A valuation methodology that estimates the value of an asset based on observed prices in actual market transactions involving comparable assets. The market approach is used to value intangible assets when reliable transaction data or licensing royalty rates are available, and is one of the three primary approaches alongside the income and cost approaches.

Are Opagio valuations accepted by auditors?

Auditors evaluate valuations on methodology quality, not source. Opagio valuations support auditor discussions when they meet technical standards, but acceptance depends on the specific asset and context.

Can Opagio guarantee HMRC acceptance?

No. HMRC valuations require a qualified independent valuer and are assessed on the specific facts of each case. Opagio provides a defensible starting point but cannot guarantee regulatory acceptance.

Does Opagio replace a professional valuation?

Opagio provides a structured starting point for intangible asset valuation, but it does not replace professional advice for regulatory, M&A, or financial reporting purposes.