CFOs, analysts want revaluation of all intangibles every year

A collective blind spot for business decision makers and policy makers has been allowed to develop, highlights the Brand Finance Global Intangible Finance Tracker report, an annual study of 57,000 companies across 160 jurisdictions. At issue is a failure to regularly appraise intangibles. Even more critically, internally generated intangibles are (as per current accounting standards) generally not recognised at all. In Brand Finance's view, a commitment to undertake an annual revaluation of all company assets, including tangible assets, acquired intangibles and intangibles generated internally, would be a boon for boards, accountants, investors and analysts. Over 50 per cent of the surveyed equity analysts and chief financial officers (CFOs) felt brands were becoming increasingly important in risk management and lending decisions and over 70 per cent felt brands were becoming increasingly important in mergers and acquisitions activity. Sixty-eight per cent of the analysts and 58 per cent of the CFOs felt all internally generated brands should be separately included in the balance sheet and that all intangibles should be revalued each year.