When performing asset appraisal for your business, consider intangible assets. Intangible assets include copyrights, equities, securities, contracts, goodwill, franchises, and trademarks. They are different from the physical assets such as land, which provide value, privileges and rights to the proprietor. Intangible assets lack intrinsic value and physical existence. More often, intangible assets provide long-term growth to your business. If you want to start asset appraisal for your intangible assets, consider limited life and indefinite useful life assets.
Indefinite intangible assets provide long-time benefits to your business despite any catastrophe. They generate income at all times. These assets include brand recognition, goodwill, and business trademarks. On the other hand, limited-life intangible assets provide cash flow for a small period. A common example of a limited intangible asset is a patent. Patents have a specified agreeable time.
All intellectual properties of your business form part of the intangible assets. If you consider calculating asset appraisal for your business, consider trademarks, trade names, patents and copyrights. For instance, a trademark helps earn more revenue for your business. Copyrights and trademarks help your business grow through brand recognition.
These are the concepts involved in the intangible asset appraisal:
There are four concepts of intangible asset appraisal. These are:
These appraisal methods can be evaluated in the following ways:
The method factors an intangible asset’s profitability, protection, advertising, market share, and stability. However, this method does not account for future asset appraisal.
Valuing intangible assets is an important aspect of your business. Intangible assets contribute immensely to the growth of your business. However, they are complex to appraise since the asset is not concrete. If you want to capture an accurate asset appraisal of your intangible asset, contact Wiley Financial. We are certified financial analysts and are here to help!