Developing a set of legally compliant Intangible asset valuation criteria and an equation-supported TEV (Total Enterprise Value) valuation approach

Abstract

Intangible Assets are increasingly being recognised as the most important, and valuable, assets held by the modern enterprise. While the treatment of tangible assets such as plant, property and equipment is subject to well established practices, the prevailing (cost, income and market-based) approaches to intangible asset valuation consistently deliver inadequate valuation outcomes for the enterprise owners of these.The valuation criteria, and TEV (Total Enterprise Value) approach, outlined in this work(being compliant with international accounting standards and supported by the legal framework within which they operate)are offered as a means of resolving this problem of inadequacy.