CIRD30650 - Intangible assets: notes on accounting practice: fair values, brands and publishing titles

Fair Values

The question of fair values for acquisition accounting is dealt with under FRS7. The subject is not gone into further in this manual.

Brands and Publishing Titles

FRS10 does not permit brands and publishing titles internally generated by the company that holds them to be capitalised on its balance sheet. But valuation issues may nevertheless arise in connection with purchased assets of this kind.

Techniques to value such assets have been developed by concerns that are regularly involved in the purchase and sale of such assets and may be used for example in applying FRS7 where the assets are acquired as part of a business (see CIRD30520). The techniques may involve ‘indicators of value’ such as multiples of turnover, or an estimate of the present value of the royalties that would be payable to license the asset from a third party.