What Is Intangible Asset Valuation?

The evaluation of intangible assets, such as brand and trademark, is based on specific purposes, following fair and statutory standards and procedures, and using appropriate methods to confirm, value and report trademarks, and provide a measure of value for asset business.

Evaluation of intangible assets

(The act of providing a measure of value to the asset business)

Right!

Evaluation of intangible assets such as brands,

Intangible assets are classified into identifiable intangible assets and non-identifiable intangible assets. Identifiable intangible assets include patent rights, know-how, trademark rights, copyrights, land use rights, franchise rights, etc. Non-identifiable intangible assets refer to

First, we must figure out which of the companies are intangible assets. Some intangible assets are easier to identify, such as patents, trademarks, computer software, etc .; others are more difficult to identify. For example, some proprietary technologies developed by the company itself. Because multiple technologies can be used in multiple products at the same time, some companies often It is difficult to figure out which ones are intangible assets. Some people even consider the products of enterprises as intangible assets for evaluation. Some relational intangible assets are even more difficult to identify. Of course, since it is an asset, it must be able to generate income for the enterprise in the future. If it cannot generate income for the enterprise, it is not an asset.

Second, the ownership relationship of intangible assets must be clarified. Because intangible assets have no physical form, and an asset can be used by multiple entities at the same time, its property right relationship is more complicated than tangible assets. Taking a patent as an example, there is a distinction between ownership and use right, and the use right has exclusive use right, exclusive use right, general use right, etc., and the evaluation value of different rights is different. Therefore, the scope and ownership of intangible assets entrusted to be evaluated must be clarified, and corresponding legal documents must be provided.

Third, there must be clear

I. Cost method for intangible asset evaluation

Market Method for Intangible Asset Evaluation

Third, the income method of intangible assets evaluation

The method of intangible asset evaluation is directly related to the evaluation results. In the practice of intangible assets evaluation in China, it is often because of the inability to apply scientific methods and cause large errors. It is necessary to deeply study the evaluation methods of various types of intangible assets, learn from advanced foreign experience, and integrate China's evaluation. The specific practice of work is innovated. The current calculation methods of intangible assets include market price method, income method and cost method.

1. Market value method. The law determines the value of intangible assets based on market transactions, and is applicable to patents, trademarks, and copyrights. Generally, the license fees for the intangible assets are calculated as a percentage of revenue based on agreements reached between the two parties to the transaction. The main problem with this law is that since most intangible assets do not have a market price, some intangible assets are unique and it is difficult to determine the transaction price.Secondly, intangible assets are generally associated with

When using the income method in the assessment of intangible assets:

(1) Based on the obtained information about intangible assets, based on the historical implementation situation and future application prospects of the assessed intangible assets or similar intangible assets, and combine the operating status of the intangible asset implementation or planned implementation, focus on analyzing the economic benefits of intangible assets. Predictive, with due consideration given to the applicability of the income approach;

(2) Reasonably estimate the expected income brought by intangible assets, reasonably distinguish the income obtained from intangible assets and other assets, analyze the expected changes related to the income, the period of income, the costs related to the income, supporting assets, cash flows, and risk factors ;

(3) keeping the caliber of expected income consistent with the caliber of discount rate;

(4) reasonably estimate the discount rate based on factors such as risk factors and time value of money during the implementation of intangible assets, and the discount rate of intangible assets shall be distinguished from the discount rate of enterprises or other assets;

(5) Comprehensive analysis of the remaining economic life, legal life and other relevant factors of intangible assets to reasonably determine the period of income.

When using the market method for the evaluation of intangible assets:

(1) Consider whether there is an active market for the assessed intangible assets or similar intangible assets, and give due consideration to the applicability of the market law;

(2) Collecting transaction information such as market transaction price, transaction time, and transaction conditions for similar intangible asset transaction cases;

(3) Select comparable intangible asset trading cases with a reasonable comparison basis, consider historical trading conditions, and focus on analyzing the asset characteristics, profitability, competitiveness, technology level, maturity, and risk status of the assessed intangible assets and the traded case. Whether they are comparable;

(4) collecting past transaction information of the evaluation objects;

(5) Based on changes in macroeconomic development, trading conditions, trading time, industry and market factors, and implementation of intangible assets, make necessary adjustments to comparable transaction cases and past transaction information of the assessed intangible assets.

When using the cost method for the evaluation of intangible assets:

(1) Fully consider the degree of correlation between the value of intangible assets and costs and properly consider the applicability of the cost method, based on all the inputs formed by the intangible assets being evaluated;

(2) Reasonably determining the replacement cost of intangible assets. The replacement cost of intangible assets includes reasonable costs, profits and related taxes;

(3) Reasonably determine the depreciation of intangible assets.

When a registered asset appraiser uses multiple assessment methods for the same intangible asset, it shall analyze the various preliminary value conclusions obtained to form a reasonable assessment conclusion. ^[1]

Enterprise intangible assets evaluation is divided into ten categories

Classification of intangible assets

For example

Sales Technology category Art class data processing Engineering Customer class Contract Human resource Geolocation Goodwill

Trademarks, websites, domain names, brands, logos, marketing networks, time-honored brands Invention patents, utility model patents, design patents, know-how, technical methods, tips Book copyright, music copyright, artwork copyright, film and television copyright, animation copyright Software ownership, software copyright, automation database Industrial design, design drawings, trade secrets, engineering drawings, integrated circuits Customer list, contracts, open orders Preferential supply contracts, licenses, concessions, exclusive agreements High-quality supporting workforce, employment contract or agreement, management team, personal value of entrepreneurs Lease rights, prospecting rights, mining rights, air control rights, water rights, road rights, special landscapes, cellars Corporate goodwill, institutional goodwill, professional personal goodwill

1. Understand the evaluation purpose of the client and communicate fully.

2. Sign the entrustment contract, specifying the evaluation purpose, target, evaluation base date and other evaluation elements;

3. Definition of property rights and determination of ownership of property rights;

4. On-site survey to understand the production, operation, management and future development of the client in detail;

5. Guide the client to fill in the basic assessment data.

6. Market research, data retrieval, analysis of relevant market needs, technical indicators, economic indicators, industrial policies, industry information, etc .;

7. Expert demonstration, assessment and estimation, three-level review;

8. Issue a formal evaluation report.

Intangible assets refer to the long-term use of enterprises, but no physical assets, including patent rights, trademark rights, copyrights, land use rights, non-patented technologies and honors. Intangible assets are special commodities with value and use value. They can be paid for transfer in the market, and over time, they will bring huge potential profits to enterprises. Therefore, taking protective measures and formulating savings plans for intangible assets are important means to prevent their loss.

Accounting Principles for Intangible Assets

Legality Principle Compliance Principle Benefit Principle: Intangible assets accounting only records intangible assets that have actually incurred expenses and can bring economic benefits to the enterprise. Otherwise only

1. State Council Order No. 91, "Asset Evaluation Management Measures", "Asset Evaluation Guidelines" issued by the Ministry of Finance, "Asset Evaluation Guidelines-Intangible Assets";

2. State Assets Management Office Order (92) 36, "Implementation Rules for Assets Evaluation Management Measures";

3.

1. Evaluation of patent rights. A patent right means that an inventor that has been approved by the government in accordance with the law enjoys an exclusive right or an exclusive right for the creation, use, and sale of his invention. The evaluation of patent rights should pay attention to the following issues: some basic conditions of the patent itself. Including: (1) Whether the type of patent belongs to invention patent, utility model patent or design patent. An invention patent refers to an invention protected by patent law, that is, a new technical solution to a product, method, or improvement thereof. There are three types of "inventions" recognized by China's patent law: product inventions, method inventions and improved inventions. A utility model refers to a new technical solution that is suitable for practical use, and is based on the shape, structure, or other combination of products. Appearance design refers to a new design that is rich in beauty of the shape, pattern, color or combination of products and is suitable for industrial applications. In terms of legal status and importance, the latter two patents are far inferior to invention patents and should be paid close attention during evaluation. (2) Residual validity period of patent right. According to Article 45 of the Patent Law, the protection period for invention patent rights is 20 years, and the protection period for utility model and design patent rights is 10 years, which are calculated from the date of application and cannot be renewed. It can be seen that this factor is very important. (3) Whether the patentee pays the annual fee as required. Because in accordance with China's patent law, failure to pay patent fees in accordance with regulations may cause patent rights to terminate before the term of protection expires. (4) Whether the patent involves infringement lawsuits or invalidity lawsuits. If involved in such a lawsuit, especially if the lawsuit has not been finalized, the value of the patent right should be greatly reduced.

2. Evaluation of trademark rights. Trademark rights refer to the exclusive rights enjoyed by registered trademark rights holders over their registered trademarks, including exclusive use rights, prohibition rights, renewal rights, transfer rights, license use rights, and so on. A product or product that has obtained a reputable trademark right can often win a large number of customers, thus bringing considerable economic benefits. When evaluating a company's trademark rights, pay attention to the following points:

A registered trademark approved by the trademark owner. Because trademark rights are created by registration, and are limited to approved registered trademarks and approved products, they are protected by law during the validity period. Unregistered trademarks are prone to infringement and have little use significance. In particular, the state has stipulated that human medicines, tobacco products, and other commodities that must use registered trademarks must not use unregistered trademarks.

Whether the validity period of the registered trademark is approaching the renewal period. Attention to the renewal of the following two aspects should be noted: First, the legality of the trademark. Because when the trademark is renewed, it may be cancelled due to illegality. Second, in the contract for the use of a registered trademark transfer license, it should be clear who is responsible for renewal and who will bear the renewal costs.

Whether the social popularity and influence of the registered trademark is a well-known trademark registered in the China Internet Network Information Center. To judge the social popularity and influence of a registered trademark, a comprehensive analysis should be carried out from the aspects of the use of the registered trademark, the quality of the product, and the sales area.

3. Evaluation of land use rights. Land use rights are the state's right to allow a unit or individual to enjoy the development and operation of state-owned land for a certain period of time. Business managers can transfer, lease, mortgage, make shares and invest in land use rights in accordance with law. In recent years, with the rapid development of China's market economy, this intangible asset has been fully reflected and valued. For the evaluation of land use rights, the Ministry of Finance issued relevant documents in 1995, which clearly stipulated that: for state-owned enterprises using land obtained free of charge through administrative allocation, enterprises should increase the value after confirmation and approval by the financial department Treatment of fixed assets, at the same time increase the national capital accumulation fund, and reflect it in a separate account. Land that has been acquired by state-owned land use rights with a transfer price that is lower than the benchmark price of the land on which it is located will be reflected in the reference book after the valuation, and the original book value of the land use rights will not be adjusted.

4. Goodwill. Goodwill generally refers to the intangible value formed by an enterprise due to advanced technology, superior product quality, and a long history. Generally, two methods are used to evaluate goodwill: direct method and residual value method.

First, the direct method. This method considers that goodwill is closely related to excess returns. Because the price paid for goodwill is actually a payment for expected and excess future returns, it is necessary to turn excess future returns into their present value. The basic formula for calculating goodwill is: goodwill = (expected future annual returns typical of the industry's constant annual income rate × enterprise's capital) ÷ capitalization rate of goodwill.

Second, the residual value method. In this method, all individual tangible assets and liabilities items and identifiable intangible assets items are calculated using the current value. The difference between the current value of each net asset and the purchase price is goodwill.

The principle of determining the discount rate

(1) The discount rate must be higher than the risk-free rate of return

The risk-free rate of return is usually based on government-issued Treasury bill rates, bank savings, and loan rates. The discount rate is higher than the risk-free rate of return, which is the risk rate of return. In a market economy, every investment comes with a certain degree of risk, and investors want to get more returns when they invest. The risk-free rate of return is essentially the minimum standard for deciding whether an investor should invest, so the discount rate must be higher than the risk-free rate of return.

(2) The discount rate should reflect the return on investment

Under normal capital market conditions, the return of each investment should not be less than the opportunity cost of the investment. The discount rate in the assessment of intangible assets reflects the expected return on the asset. The rate of return is directly proportional to the investment risk. The greater the risk, the higher the expected return; the lower the risk, the lower the expected return. Therefore, when evaluating the value of intangible assets, the discount rate should fully reflect the return on investment.

(Three) the discount rate must take into account inflation

The depreciation caused by inflation should be reflected in the discount rate. If inflation is taken into account in estimating the future cash flows of the asset, then the inflation rate should also be taken into account in estimating the discount rate, otherwise it will not be taken into account.

(4) The discount rate matches the caliber of the selected income amount

In the evaluation practice, the amount of income can be calculated differently for different purposes, such as the use of net profit and net cash flow. If the impact of specific risks on assets has been adjusted when estimating the future cash flow of the assets, these specific risks need not be considered when estimating the discount rate; if the basis for estimating the discount rate is after-tax, it should be adjusted Is the pre-tax discount rate. When evaluating for different income amounts, only by matching the calculation caliber between the income amount and the discount rate can the reasonableness of the evaluation result be guaranteed.

(5) The discount rate must be able to reflect the return risk of the asset

Certain returns are accompanied by certain risks. Under market economic conditions, companies must bear high risks if they want to obtain high returns. Therefore, the discount rate should reflect the return risk of the asset when it is selected.

The main method of determining the discount rate

(I) Weighted average cost of capital method

There are various types of assets in an enterprise, and different types of assets have different costs. This method is to calculate the return on investment of intangible assets by using the weighted average return on investment of all assets of the enterprise, that is, using the weighted average cost of capital of the enterprise as the discount rate substitute. This is because the weighted average cost of capital of an enterprise is the necessary return required by the enterprise to make various investments. However, if the weighted average return on investment of all assets of an enterprise is directly used as the return on investment of intangible assets, the risk of investment will be underestimated, and the discount rate will be lower.

(II) Risk accumulation method

The discount rate consists of a risk-free rate of return and a risk rate of return. Accumulation is a method of quantifying the risk-free return and risk return of intangible assets and accumulating them to obtain a discount rate. The risk-free rate of return refers to the level of profit under normal conditions, and is the return on investment that all investments should receive. The risk-return ratio refers to the return on investment obtained by an investor undertaking investment risks that exceeds the risk-free return. It is determined according to the size of the risk and increases as the investment risk increases. The risk-return ratio is generally evaluated by the assessors on the development risks, operating risks, and financial risks of intangible assets and obtained through empirical judgment. The formula is:

Risk return rate = development risk return rate + operating risk return rate + financial risk return rate

The issues to be considered when applying the risk accumulation method are as follows: First, pay attention to the special risks faced by intangible assets. The risks faced by intangible assets are different from tangible assets, such as the risk of misappropriation of trademark rights, the risk of infringement of patent rights, the risk of disclosure of non-patented technology, and so on. The second is how to determine the contents of the discount rate and the ratio of these contents. The third is whether the discount rate matches the income of intangible assets.

(3) Industry average return on assets method

The industry average rate of return on assets is one of the commonly used methods to determine the discount rate in the evaluation of intangible assets in China. This method uses the average rate of return on assets of the industry in which the company is assessed as the discount rate. The industry's average return on assets can be obtained from socio-economic statistics or from listed company statistics. Because listed companies use open financial systems, and the financial statements have been strictly audited by certified public accountants, they are reliable. The industry's average return on assets is relatively reasonable. The industry's average return on assets is a comprehensive reflection of the company's operating conditions, and can reflect the returns of different industries. However, there are also some problems in the application of this method. For example, the average return on assets of the industry is easy to ignore the differences within the industry. The factors that determine the risk of enterprises in the same industry are very different. They are directly obtained from socioeconomic statistics. The relevant data is not the same as the profitability of the assessed intangible assets, etc. Therefore, when using the industry's average return on assets as the discount rate for intangible assets, you must make a judgment based on the specific situation, and the revised industry average will be based on this. The rate of return on assets is used as the discount rate.

(IV) Capital Asset Pricing Model

Western countries mainly use capital asset pricing models to determine discount rates. Its calculation formula is:

i = Rf + Rm + Rf +

In the formula: i is the discount rate; Rf is the risk-free rate of return; Rm is the expected rate of return; is the risk coefficient; is the individual risk adjustment coefficient of the enterprise.

The discount rate obtained using the capital asset pricing model is also obtained by calculating the risk-free rate of return of the funds plus the risk rate of return. The model determines the quantitative relationship between investment risk and return under uncertain conditions, and is derived under a series of strict capital assumptions. For example, the investor is risk averse; there is no transaction cost; the market is completely decentralizable and Flowable etc. According to the current development status of China's capital market, the conditions for using this model are not mature. China's securities market has a relatively short period of establishment, imperfect development, and insufficient and effective information. Therefore, the calculation of the beta coefficient has certain limitations. The calculation of the coefficient requires a lot of data to support, and generally only listed companies can calculate it. At present, in actual work, it is regularly calculated and published by specialized agencies.

Factors to consider

(I) The actual situation of the enterprise and the evaluation target

When assessing intangible assets, appraisers should consult the profitability of the assets of the assessed enterprise in recent years, development trends, the unique risk return of the assessed intangible assets, and the comparable economic parameters of the industry in which the enterprise is located. Rate determination method.

(Two) different assessment purposes

Different evaluation methods should be selected according to different evaluation purposes. Only by determining the discount rate of intangible assets based on the purpose of assessment and future use of the intangible assets, can it have a stronger correlation with the assessed intangible assets, and the evaluation results will be more accurate. Enterprises generally need to evaluate intangible assets in two situations: first, the sale of intangible assets, the purchase of shares, the debt restructuring, or the exchange of non-monetary assets, which will change the current conditions of use of intangible assets or can no longer be used by the enterprise. You can use the industry average return on assets method to estimate the discount rate. In addition, in the transaction, both parties to the transaction are rational, so the evaluator should consider the discount rate from the perspective of the asset transferor and the asset purchaser. For example, when the entrusting party is the transferor of assets, the discount rate can be determined based on the industry's average return on assets; when the entrusting party is the purchaser of assets, the capital asset pricing model can be used to determine the discount rate. The second is to evaluate the intangible assets as part of the company's overall assets during the asset evaluation. In this case, the intangible assets will continue to be used in accordance with existing uses. At this time, the proportion of intangible asset income in the total corporate income and the risks assumed must be considered. The discount rate can be determined using the cumulative risk method and the industry's average return on assets method.

(3) Other factors

The factors that need to be considered when selecting the method for determining the discount rate for intangible asset evaluation are:

First, combine static analysis with dynamic analysis. The static analysis assumes that the expected return of intangible assets in each future period is fixed, and the discount rate that matches the expected return is also fixed. However, in practice, the expected return is volatile and changes every year. The discount rate will also fluctuate due to the influence of bank interest rates, socioeconomics, and inflation. Only using static analysis to estimate the discount rate of intangible assets will distort the valuation result. Therefore, you should also use dynamic analysis to estimate the discount rate. Use the variable discount rate to discount the estimated future cash flow in order to be more appropriate. To reflect the value of intangible assets. Therefore, to determine the discount rate, we must combine static analysis with dynamic analysis.

Second, combine factor analysis with model analysis. Factor analysis is to analyze the risk factors that affect the return of intangible assets and accumulate the discount rate of intangible assets. The quantification of risk is subject to the subjective influence of assessors, which makes the evaluation results biased. The model analysis uses a series of assumptions as the premise to determine the discount rate, assuming that the capital market is standardized and idealized. The current discount rate model is the capital asset pricing model. However, as far as the actual situation in China is concerned, the assumptions on which the model analysis is based are not fully met, so the model analysis can be given priority in theory, but there are still problems in actual operation. Therefore, assessors should combine model analysis with factor analysis in order to comply with the environment in which China's intangible assets are evaluated.

Third, combine qualitative analysis with quantitative analysis. The quantitative analysis of the discount rate sometimes results in uncertainty of the discount rate due to the lack of validity of the selected data, so it is necessary to do the necessary qualitative analysis. The selection of the discount rate depends to some extent on the subjective judgment of the evaluator and is affected by the professional knowledge and experience of the evaluator. Therefore, the evaluator should pay attention to the accumulation of ordinary experience and professional knowledge, and improve their professional quality. The selection of the current rate is a combination of qualitative analysis and quantitative analysis, so that the discount rate is selected objectively, so that the value of intangible assets can be reliably measured.

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1. Independence principle: have independent assessment qualifications, operate independently, and independently bear civil liability.

2. The principle of objectivity: proceeding from the actual situation, conducting careful investigations and studies, and meeting the actual selection methods and standards of the enterprise's assessed assets.

3. Scientific principles: Guide the operation with the basic principles of asset evaluation, which is in line with national standards and international practices.

4 Principles of asset verification: No reduction or omission of evaluation of the assets assessed.

5. The principle of security and confidentiality: keep the known technical secrets and business secrets absolutely confidential.

As far as the environment of Chinese enterprises is concerned, the evaluation of intangible assets has the following three levels of significance:

Asset appreciation equation: make one plus one greater than two!

Corporate assets can be broadly divided into two categories: tangible assets-including construction, machinery and equipment, financial assets and infrastructure and intangible assets-from human capital and creative know-how, branding, design and other Ineffective results from the company's creative and innovative capabilities.

In the traditional sense, tangible assets reflect the value of a company, and it is also considered to a large extent to determine the competitiveness of a company in the market. Enterprise managers are also accustomed to the production and operation of tangible assets. But with the advent of the 21st century knowledge economy era, the above situation has undergone tremendous changes: market competition is no longer a traditional economy of scale, and the cornerstone of the development of core competencies for enterprises has also been transformed into the creation of intangible assets and runs through the enterprise The entire process of knowledge economy creation, dissemination and application. Entrepreneurs are more and more aware of the huge potential and power of intangible assets, and more and more enterprises are beginning to learn how to "upgrade the operation of tangible assets to the management of intangible assets."

First, the establishment of a brand has become an important means for companies to enter and participate in market competition. It is an indisputable fact that brands have been generally accepted by enterprises as an intangible asset. In a nutshell, a brand is a concentration and generalization of an enterprise's intangible assets, a proof of the overall quality and strength of an enterprise, and a symbol of corporate reputation and reputation. It plays an important role in market expansion, capital expansion, and team cohesion. The president of the US Coca-Cola Company once said a classic saying: "If a fire burns Coca-Cola, I can make another Coca-Cola the next day!" This is the value of the brand and this is the power of intangible assets!

Secondly, branding is not a behavior outside the normal business activities of an enterprise. It is part of the business activities from the beginning. The process of dealing with customers, suppliers, partners, governments and society is itself a branding process. Brands don't have the problems of "presence or absence" and "doing or not doing", only the value of the value and the amount of assets. A brand is a strategic asset for the entire company, not a promotional tool that marketing and brand executives can build, dominate, and use on their own. If Chinese companies want to complete the transformation from simply manufacturing products to creating brands in the global competition, they must complete the brand s worldview (brands are not marketing tools but strategic assets) and methodologies (brands are intangible assets, but they can also adopt specific methods Measuring and managing assets).

Finally, without diffusion and dissemination, it is impossible for brands to produce huge economic and social benefits, and it is difficult for consumers to understand, recognize and support them.

How to achieve effective operation of intangible assets

1. Pay attention to the input of intangible assets and enhance the value of intangible assets. Intangible assets require tangible inputs. Enterprises should increase investment in the following five areas to achieve the preservation and appreciation of intangible assets: first, the use of intellectual property to create intangible assets; second, to create intangible assets in quality and reputation; third, to create intangible assets in advertising; fourth, to talent technology China will build intangible assets; Fifth, create intangible assets in management.

2. Make full use of the existing intangible assets and maximize the effectiveness of their assets. Most intangible asset projects are time-constrained. Therefore, enterprises should make the best use of them within their effective time. They must not be idle or wasted. Enterprises should pay full attention to the role of intangible assets and strive to turn existing intangible assets into realistic productivity as soon as possible. Seize the various advantages of existing intangible assets, take the initiative to carry out various businesses, and give full play to the functions of extension, financing and expansion of intangible assets.

3. Strengthen the management of intangible assets. Intangible assets are the wealth that enterprises rely on for survival. They are vital to the development of enterprises. Once lost, they will be fatal to enterprises. Therefore, intangible assets must be strengthened to prevent loss or depreciation. The first is to strengthen the cost accounting of intangible assets; the second is to attach importance to the valuation of intangible assets; the third is to strengthen confidentiality; the fourth is to obtain legal protection in a timely manner.

With the advent of the era of knowledge economy, the increasing role and status of intellectual resources and intellectual products in the economic activities of enterprises, it is a general trend to recognize and measure them as accounting elements and incorporate them into the enterprise accounting system. Whether it is the establishment of a new knowledge accounting system to meet the needs for the identification, measurement, recording, and reporting of intellectual resources and intellectual products in the era of the knowledge economy, or the transformation of existing intangible asset accounting, it will bring new problems to intangible asset accounting. New opportunities and huge shocks have prompted people in the accounting community to continue their research and exploration, leading to revolutionary changes. It can be expected that with the continuous deepening of research on accounting issues related to intellectual resources and intellectual products, a brand new intangible asset accounting system will be presented to the world in the near future.

To perform the intangible asset evaluation business, after performing the necessary evaluation procedures, an evaluation report shall be prepared in accordance with the "Asset Evaluation Criteria-Evaluation Report" and shall be properly disclosed. Disclose necessary information in the evaluation report so that users of the evaluation report can reasonably understand the evaluation conclusions.

The following should be clearly stated in the evaluation report:

(1) the nature, rights and restrictions of intangible assets;

(2) Geographical restrictions, domain restrictions, and legal and regulatory restrictions imposed by intangible assets;

(3) the prospects of the macro economy and industry;

(4) the history, current situation and development prospects of intangible assets;

(5) the profit period of intangible assets; (6) the sources of information on which the assessment is based; (7) other necessary information.

The value type and definition of intangible assets evaluation should be clearly stated in the evaluation report.

Clearly state the following about the assessment method:

(1) the choice of assessment methods and their reasons;

(2) The source, analysis, comparison, and calculation of each important parameter;

(3) the process of analyzing the preliminary assessment conclusions and forming the final assessment conclusions;

(4) Hypothetical prerequisites and restrictions for the conclusion of the assessment. ^[1]