Income Approach (Valuation)

Definition

A valuation methodology that estimates the value of an asset based on the present value of expected future economic benefits, such as cash flows, earnings, or cost savings. The income approach is the most widely used method for valuing intangible assets and includes techniques such as the relief-from-royalty and multi-period excess earnings methods.

Related Terms

IAS 38 (Intangible Assets) Identified Intangible Asset IFRS 13 (Fair Value Measurement) IFRS 3 (Business Combinations) Impairment

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