What does an intangible asset valuation report typically contain?

Full Explanation

A professional intangible asset valuation report follows a structured format designed to provide transparency, support auditability, and meet regulatory requirements. The standard sections include: Executive summary — a concise overview of the engagement, the assets valued, and the concluded fair values. Scope and purpose — the reason for the valuation (PPA, impairment testing, tax planning, litigation), the valuation date, the applicable standard (IFRS 13, ASC 820, IVSC), and any limitations. Description of the business — an overview of the acquired company, its industry, competitive position, and financial performance. Asset identification — a comprehensive list of all intangible assets identified, including those not separately recognised (like assembled workforce), with the basis for identification. Methodology — for each asset, the method used (RFR, MPEEM, cost approach, With-and-Without, Greenfield), the rationale for method selection, and data sources. Detailed calculations — the complete valuation model for each asset including revenue projections, attrition assumptions, royalty rates, discount rates, contributory asset charges, tax amortisation benefit, and present value calculations. WARA reconciliation — demonstrating that asset-level discount rates are consistent with the overall WACC. Sensitivity analysis — showing how changes in key assumptions affect concluded values. Conclusions — the final fair value for each intangible asset and total goodwill. Supporting appendices typically include comparable transaction data, royalty rate benchmarks, and detailed financial projections.

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