Patents

A contractual arrangement in which one party agrees not to engage in competitive activity for a specified period and within a defined geographic area. Non-compete agreements are recognised as identifiable intangible assets in purchase price allocations and serve to protect acquired customer relationships, trade secrets, and human capital.

Creations of the mind that are legally protected, including patents, trademarks, copyrights, and trade secrets. IP is a critical intangible asset category for technology and innovation-driven firms and can be licensed, sold, or used as collateral for financing.

The estimated value of an asset at the end of its useful life or the end of a forecast period. In intangible asset valuation, residual value considerations are important for assets with finite lives, such as patents approaching expiration, as well as for terminal value calculations in discounted cash flow models.

The period over which an intangible asset is expected to contribute to future cash flows, determining the duration of amortisation. Useful life may be finite (e.g., a patent term) or indefinite (e.g., a perpetually renewed trademark), and its estimation requires careful analysis of technological, legal, and competitive factors.

A vehicle equipped with sensors, software, and AI systems that enable it to navigate and operate without direct human input. Autonomous vehicles represent a convergence of multiple high-value intangible assets, including proprietary algorithms, trained machine learning models, mapping data, sensor fusion technology, and safety validation datasets.

The application of biological sciences to develop products, processes, and services across sectors including pharmaceuticals, biotechnology, medical devices, agricultural technology, and environmental science. Biosciences companies are among the most intangible-asset-intensive businesses in the global economy, with value concentrated in patents, regulatory approvals, clinical trial data, proprietary compounds, and specialised human capital.

Freedom to operate, in a lending context, is the assurance that a borrower can commercialise the intellectual property it is pledging as security without infringing the rights of a third party. For a lender, freedom to operate lending analysis matters because collateral value depends not only on the borrower owning clean title to an asset but on that asset being lawfully exploitable - IP that generates cash today can be worthless tomorrow if a competitor's prior patent blocks its use or forces a costly redesign.

Subsequent expenditure on an intangible asset is spend incurred after the asset has been recognised — renewing and maintaining a registered right, defending it, upgrading software already in use, or continuing to invest in an asset already carried on the balance sheet. Under IAS 38.20 (IFRS), subsequent expenditure is normally recognised in profit or loss as incurred.

IP Valuation: How to Value Intellectual Property

The hub: IVS 210 methods, each type of IP, and when and by whom IP is valued.

Broadcasting Rights: Valuation for Media Companies

How to value broadcasting rights as contract-based intangible assets under IFRS 3. Covers sports broadcasting rights, content distribution agreements, spectrum licences, and the income approach for media rights valuation.

Do registered IP rights get better loan terms than unregistered?

Yes. Registered rights such as patents, trade marks and registered designs carry more weight than unregistered IP, supporting higher advance rates because title and enforceability are easier to prove.

Can AI-developed software be capitalised under IAS 38?

Yes, AI-developed software can be capitalised under IAS 38 once it meets the six development-phase recognition criteria, including demonstrable technical feasibility and the ability to measure costs reliably.

What is the difference between fair value and book value for intangible assets?

Book value reflects historical cost less accumulated amortisation and impairment, while fair value represents the current price a market participant would pay — fair value is almost always higher for productive intangible assets.