Transfer Pricing Associates

Benchmarking Identifiable Intangibles and Their Useful Lives

post Tuesday October 9, 2012

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Improving understanding of intangibles has gained in popularity in recent years. However, many managers are still struggling with its main concepts, particularly, after the introduction of the uniform procedure of purchase price allocation that matches the purchase prices to asset values of the acquired company. Managers are struggling with identifying the useful lives of intangibles and it has thus far been more of a speculative, subjective estimate of what they believe is the remaining useful life of their intangibles. However, Business Valuation Resources recently published a study of intangible assets and their respective useful lives. It is a compilation of reported data of over 360 purchase price allocations, allowing managers to use it as a benchmark for allocating useful lives. It also comes with different valuation procedures as well as a checklist of factors to consider.

The study covers several intangible asset classes, for example:

For more information and book purchase click here.

Source: Business Valuation Resources

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