The Valuations Of International Financial Information Standards

The valuations of International Financial Information Standards

The assessment of intangibles or international financial information standards (IFRS) are not yet recognized in their entirety doing a difficult task to assess the company. But we can find identifiable intangible assets and the unidentifiable.

Identifiable intangible assets can be those acquired by third parties, those obtained from business combination or donates. They can also be generated internationally, such as expenses in research and development or computer applications generating fruitful economic benefits, while unidentifiable intangible assets are usually the rest of intangible elements that meet assets, but are not separable or identifiable,possess a different accounting treatment. These in turn can be acquired by another company or internally generated.

It can be evidenced that the assessment of intangible goods within a company is varied but few companies take it into account, more they focus on monetary. Gonzales (2009) suggests classifying intangible assets in three large groups that are: human capital, structural capital and relational capital in which within these groups are several qualitative elements that depending on the service we provide are born the criteria to be valued for exampleIf we want to hire or transfer a player we must give an intangible assessment such as discipline, leadership, commercial image, behavior, integration between others.

In the case of the company, the brand would be the strengthening, protection or renown of it, so that currently for the assessment of intangibles you must have methodologies that allow these variables based on multicriterium models that are instruments that are instruments that are instruments that are instruments that are instrumentsthat allow to give an assessment to these intangible elements.

The assessment of the intangibles is not, it only depends on the value that we give, but also to the competitiveness within the market, since they are the ones that allow our company, brand, image to continue growing within it suppose that at the beginning it had a50% value today in the market is 80% and that is for the intangible assessment that, although we do not see it an important part of it, it is presumed that only economic or financial reports are the only ones can give value toThe company and to the contrary these intangible assets help generate future economic benefits and contributes to the creation of company assessment.

Types of valuations and methods

The value of intangibles is important within the value of the company, as well as the different components that can form it, since it allows to measure and know its continuity and survival in the market.

Intangible assessment methods are approaches to reality at the exact value of how much the company can be worth. From these assessment methods a trend can be extracted that shows if the results that the company is obtaining are better or worse the last year. In this way, the assessment of intangibles can be resembled to a balance that marks the approximate value of whether or not to increase the intangible value.

Therefore, for its assessment, a large number of methods that can be grouped into income -based methods have been proposed, market -based and cost -based methods. Alvares states that several methods or models are broken down as they are:

• MCM that is based on market capitalization, showing the economic value of intellectual capital and serves to make comparisons and benchmarking.
• Roa is based on assets, offering intellectual capital, collaborates in benchmarking, comparisons, taking into account traditional accounting rules.
• Dec estimate the economic value of intellectual capital combining monetary and non -monetary values, identifying quality standards and based on cause and effect events.
• SC identifies the components of intellectual capital generating indices, varied, tables and graphic obtaining clearer results allowing to create advances, policies, rules in it.

These methods could be said that they are main which each one has their formula to calculate the value, each one has its advantages and disadvantages and which we must take into account that a continuation of method must be taken and not constantly changed to see its evolutionand results in the assessment.