What is an intangible asset valuation report?

Full Explanation

An intangible asset valuation report is a structured document that identifies, categorises, and values a company's intangible assets. It typically includes an inventory of identified intangible assets by category, the valuation methodology applied to each asset (with justification for method selection), key assumptions including discount rates, growth rates, useful lives, and royalty rates, sensitivity analysis showing how values change under different assumptions, and a conclusion of fair value with supporting evidence. These reports serve multiple purposes: M&A due diligence and purchase price allocation, fundraising (demonstrating value to investors), financial reporting (balance sheet recognition under IFRS 3/ASC 805), tax planning (transfer pricing and IP structuring), and strategic planning (identifying which intangibles drive the most value). In Opagio Intangibles, the Asset Valuator values individual intangible assets with recognised methods such as relief from royalty and MPEEM, with sensitivity analysis for four of its seven methods, and Report Studio produces a PDF report from the saved valuations. Where an independent valuation is required, a qualified valuer prepares it.

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