IMPACT OF INTANGIBLE ASSETS ON VALUATION OF COMPANIES

Intangible property usually includes patent, non-patent, trademarks, copyright, franchisees, rights of land usage etc. But till now, the definition of intangible property is in the dispute. This abstract data is selected from the CCER database intangible objects, including goodwill. The intangible asset has not yet been found in the financial position of any company, yet it has a very important effect on the company’s entire financial situation. When a company passes through the steps of your evaluation to detect the position of its market or when he is planning to sell or merged his business or merge, then the question of its value comes in the picture. Since the middle of the 20th century, with the rise of business forms such as subsidizing, franchising, OEM, etc., the external property enterprise plays an important role in the enterprise’s daily operation and expansion, and the stable benefits for the enterprise. For example: Microsoft controls the global software market by the intangible properties such as trademark rights and software copyright due to the trademark, recipes and a unique alcohol making, the State Liquor Mao Tai also produces significant value. At such time it will have to find out what the role of intangible assets in the company’s total value is to. The manager of major companies in today’s changing economy understands that the major source of value construction is intangible assets (IA). The latest survey confirms the fact that these property prices are now the driver of the “traditional” property. The same survey confirms the fact that one-third of all effective investment solutions is based on the existing intangible properties, and it is based on the basis of IA, allowing them to make more accurate prediction of the company’s income and profitability in the future and therefore, the value of the company to the shareholders. The purpose of this research is to evaluate the effect of intangible assets which are internally (i.e. which growth costs and patents are included). This research is done using different ideas and information using various professionals engaged in various companies. About 12 different companies have been the sample of financial. Data has been collected through questionnaire mode for the purpose of study and study. Studies show that the value of intangible property affects the market evaluation of companies.

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Keywords: Intangible Assets, Valuation, Profitability, Strategic, Expansion, Operation, Traditional.


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