Accounting treatment and valuation issues in intellectual property

CPA Australia and IP Australia have released two intellectual property recordings - one on valuation methodologies and the other on implications of the accounting treatment of intellectual property.

Valuation of intellectual property

This recording, presented by Mark Whittaker (Partner, Corporate Finance, BDO Brisbane) discusses the definition of intellectual property; the purpose of valuation; the stages of intellectual property development; and the range of valuation methodologies commonly used to value intellectual property, including relief from royalties, excess profits, gross profit differential, premium sales price, comparable analysis, historical cost, replacement cost and enterprise approach.

Accounting treatment of intellectual property

This recording, presented by Professor Anne Wyatt (UQ Business School) examines the implications of the accounting treatment of intellectual property under AASB 138, including implications of the treatment of IP for internal business planning or analysis and external valuation purposes. The narrow historical genesis in the accounting for research and development under IAS 38 has left the accounting for IP without a relevant and logical framework and businesses need to build a business plan to communicate their value proposition.

In a recent live chat Professor Wyatt and Mark Whittaker addressed questions following on from issues raised in the recordings. The transcript can be viewed below in the embedded window or downloaded as a PDF.

About the presenters

Professor Anne Wyatt has a PhD from University of Technology Sydney focused on accounting for investments in intangible assets, is a Chartered Accountant, and a graduate member of the Australian Institute of Company Directors. Professor Wyatt has an international reputation for excellence in professional and academic research and scholarship arenas.

Mark Whittaker specialises in valuations, independent expert report preparation, financial modelling, mergers and acquisitions, and corporate advisory. Whittaker is both a member of Chartered Accountants Australia & New Zealand and a Chartered Financial Analyst® (CFA) Charterholder.

October 2021
October 2021

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