Intangibles and methods for their valuation in financial terms: Literature review

Abstract

Purpose: The purpose of this paper is to review literature devoted to intangibles and their valuation and give examples of the methods that can be used for valuation of individual intangibles in financial terms.Design/methodology: The paper presents a systematic review of articles dedicated to intangibles and their valuation. Originality/value: Basic definitions and differences between intangibles, intangible assets, identifiable intangible assets, knowledge assets and intellectual capital have not been mentioned in one paper yet. List of intangibles and methods for their valuation gives a direction for future work that can be fruitful for valuation of intangibles.

Industry 4.0—Awareness in South India

“…Thus, we find implementation of any I4.0 related features difficult from non-technical point of view, if respondents' expectations are negative towards companies. On the other hand, throughout each set of questions, we observe a significantly higher proportion of respondents expecting rather positive impacts within questioned aspects, that have previous knowledge or information (which should be also considered as a part of intellectual capital [51]) about key terms addressed in the first part compared to those without such information. To add on, respondents with previous experience with IoT and I4.0 expressed positive expectations with higher frequency compared to those without such experience.…”

Investment Decisions Formation: Innovative Assets

“…Even in the world practice where great experience of intangible assets valuing and accounting are collected, the accounting of intangible assets section have not been developed completely" [11]. Accounting of innovative assets, which are the part of intangible assets, is complexified more yet because in addition to the fact that "Intellectual assets are hardly identifiable separately, determining their value is more difficult than for intangible assets and their value is also more volatile" [12], intellectual property rights are within the framework of the civil law. It means that beside accounting of expenses for innovative activity an organization need to account expenses and take measures for copyright protection of intellectual activity object (innovative asset), what is executed by patent divisions, other non-commercial organizations and government agents.…”

Intangible assets in information technology projects: identification and evaluation

“…Intellectual Capital Pastor et al (2017); Hoss, Rojo, and Grapeggia (2010); OECD (2008) It includes human resources and capabilities, organizational competencies and "relational" capital, and is named as the "era of knowledge".…”

“…According to Damodaran (2012), the intangible assets are related to human capital, technological vanguard, brand, or the workforce. The term "intangible" can be applied to an asset or to a liability, and this asset would be the company's bad reputation or an insecure work environment (Pastor et al, 2017;Caldas, 2014). Hoss, Rojo, and Grapeggia (2010) joined the assets intellectual capital, human capital and goodwill in a set named "era of knowledge", claiming that "intangible assets" is the term that best represents this category of assets.…”