VALUATION OF INTANGIBLE ASSETS IN BUSINESS VALUATION: ROLE, CLASSIFICATION, METHODS

Анотація

The article notes the essence of “business” and “company” as well as their aim for investment and decision-making purposes. It also defines the essence and objectives of business evaluation as well as importance of the valuation of the business for their confident activity. The need of standardization of evaluation process was mentioned. The aim of business valuation is mentioned considering targeted environment. The functions of business evaluation are considered and their brief description is given. The factors that need to be used when evaluating a business are listed. The characteristic of fair value of business was noted and the basic methods used for its estimation in world practice is considered according to their classification. The issue of intangible assets valuation today is very controversial, but as the same time the importance of intangible assets and their role in assessing the value of business grows every year, and it was considered in the article. The process of estimation of intangible assets in explained due to some characteristics according to the article and the procedure for accounting of intangible assets in accordance with International Accounting Standards is determined as well as the procedure of fair value estimation of both internal generated and purchased intangible assets. There were also indicated concepts of revaluation and impairment of intangible assets due to the correct estimation of their useful life and economic utility. Also in the article was mentioned when the amortization of the intangible asset should begin. The methods of intangible assets valuation were determined and details for each method were characterized as well. The intangible assets were indicated due to the ability to identify them. The concept of goodwill associated with unidentifiable intangible assets, its accounting in accordance with international accounting standards and the importance of its evaluation to determine the fair value of the business. But the area of goodwill which cannot be detected based on International Financial Reporting Standards is still pourly researched. According to this issue, recommendations for further research of this specific area were given.

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