Information Asymmetry

Definition

A situation in which one party in a transaction possesses more or better information than the other, creating an imbalance that can affect pricing and deal outcomes. Information asymmetry is particularly acute in intangible-heavy businesses, where the true value of assets such as proprietary data, know-how, and relationships is difficult for external parties to assess.

Related Terms

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

Put this knowledge to work

Use Opagio's free tools to measure and grow the intangible assets that drive your business value.