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The valuation and recognition of internally generated brands & trademarks

Nilsson, Mikael LU and Hawwari, Aisha LU (2017) BUSN79 20171
Department of Business Administration
Abstract
Title:
The valuation and recognition of internally generated brands & trademarks

Seminar date:
31st May 2017

Course:
Degree project – Accounting and Finance, BUSN79

Authors:
Mikael Nilsson & Aisha Hawwari

Supervisor:
Kristina Artsberg

Examinator:
Susanne Arvidsson

Key words:
Internally generated brands, Brand valuation, Reliability, Recognition, Accounting

Purpose:
In this thesis we aim to give insights into the question if the market considers the valuation of internally generated brands to be reliable and if the market considers the recognition of trademarks to provide useful information. We suppose that our contributions could be of guidance for future research in the subject area and serve as useful... (More)
Title:
The valuation and recognition of internally generated brands & trademarks

Seminar date:
31st May 2017

Course:
Degree project – Accounting and Finance, BUSN79

Authors:
Mikael Nilsson & Aisha Hawwari

Supervisor:
Kristina Artsberg

Examinator:
Susanne Arvidsson

Key words:
Internally generated brands, Brand valuation, Reliability, Recognition, Accounting

Purpose:
In this thesis we aim to give insights into the question if the market considers the valuation of internally generated brands to be reliable and if the market considers the recognition of trademarks to provide useful information. We suppose that our contributions could be of guidance for future research in the subject area and serve as useful document for standard setters when deciding on future reforms of IFRS 3 and IAS 38.

Methodology:
This study is a qualitative study with a cross-sectional design consisting of semi-structured interviews with both preparers and users of financial information.

Theoretical framework:
Our theoretical framework consists of three main sections. Starting with defining a brand, we further move on to the presentation of the most recognized brand valuation methods and finalize with a presentation of the accounting debate concerning intangible assets and the recognition of internally generated brands.

Empirical foundation:
Our empirical research relies upon six interviews with various market participants where one participant is classified as a user of financial statements and the other five as preparers. We have received comments from two companies that, due to various reasons, declined to participate in an interview.

Conclusions:
We draw the conclusion that internally generated brands should not be recognized in the balance sheet for various reasons. First, the comparability problem is not perceived to be a major problem. Second, it is perceived to be difficult to value internally generated brands reliably. Third, users of financial statements do not find this information to be useful in making their economic decisions. (Less)
Please use this url to cite or link to this publication:
author
Nilsson, Mikael LU and Hawwari, Aisha LU
supervisor
organization
course
BUSN79 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
Internally generated brands, Brand valuation, Reliability, Recognition, Accounting
language
English
id
8917801
date added to LUP
2017-07-05 16:34:53
date last changed
2017-07-05 16:34:53
@misc{8917801,
  abstract     = {Title:
The valuation and recognition of internally generated brands & trademarks

Seminar date:
31st May 2017

Course:
Degree project – Accounting and Finance, BUSN79

Authors:
Mikael Nilsson & Aisha Hawwari

Supervisor: 
Kristina Artsberg

Examinator: 
Susanne Arvidsson

Key words:
Internally generated brands, Brand valuation, Reliability, Recognition, Accounting

Purpose:
In this thesis we aim to give insights into the question if the market considers the valuation of internally generated brands to be reliable and if the market considers the recognition of trademarks to provide useful information. We suppose that our contributions could be of guidance for future research in the subject area and serve as useful document for standard setters when deciding on future reforms of IFRS 3 and IAS 38.

Methodology:
This study is a qualitative study with a cross-sectional design consisting of semi-structured interviews with both preparers and users of financial information.

Theoretical framework:
Our theoretical framework consists of three main sections. Starting with defining a brand, we further move on to the presentation of the most recognized brand valuation methods and finalize with a presentation of the accounting debate concerning intangible assets and the recognition of internally generated brands.

Empirical foundation:
Our empirical research relies upon six interviews with various market participants where one participant is classified as a user of financial statements and the other five as preparers. We have received comments from two companies that, due to various reasons, declined to participate in an interview.

Conclusions:
We draw the conclusion that internally generated brands should not be recognized in the balance sheet for various reasons. First, the comparability problem is not perceived to be a major problem. Second, it is perceived to be difficult to value internally generated brands reliably. Third, users of financial statements do not find this information to be useful in making their economic decisions.},
  author       = {Nilsson, Mikael and Hawwari, Aisha},
  keyword      = {Internally generated brands,Brand valuation,Reliability,Recognition,Accounting},
  language     = {eng},
  note         = {Student Paper},
  title        = {The valuation and recognition of internally generated brands & trademarks},
  year         = {2017},
}