Identified Intangible Asset

An identifiable intangible asset representing the value of unfulfilled orders or contracts at the date of a business combination. Backlog intangibles are recognised separately under purchase price allocation and are amortised as the underlying orders are fulfilled.

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.

Intangible assets that are identified and recorded on the balance sheet for the first time as part of a business combination, despite having been unrecognised on the acquired company's own books. These assets — such as customer relationships, order backlogs, and proprietary technology — often represent a substantial portion of the total purchase price.

A valuation approach that estimates the value of a business by adjusting the book values of all assets and liabilities to their fair values, including the recognition of off-balance-sheet intangible assets that meet IFRS 3 or ASC 805 recognition criteria. The adjusted net asset method is primarily used for asset-holding companies, investment vehicles, and businesses where value resides primarily in the asset base rather than earnings capacity.

The total value of a company's or fund's assets minus its liabilities. For investment funds, NAV represents the per-share or per-unit value.

A charge applied in the Multi-Period Excess Earnings Method (MPEEM) to deduct the fair return earned by other assets that contribute to the cash flows being valued. Contributory asset charges ensure that the residual earnings attributed to the subject intangible asset are not overstated by stripping out returns earned by tangible assets, working capital, and other identified intangibles.

A non-physical asset that derives value from intellectual or legal rights, or from the competitive advantage it provides. Examples include brands, patents, software, customer relationships, data, organisational know-how, and human capital.

The economic return generated by a company's intangible asset base, expressed as income attributable to intangible assets divided by their estimated value. Yield on intangible assets provides a measure of how effectively a firm is monetising its intellectual property, brand, customer relationships, and other non-physical resources.