{"id":24343,"date":"2023-03-03T00:01:34","date_gmt":"2023-03-03T05:01:34","guid":{"rendered":"https:\/\/pdv-a.com\/?p=24343"},"modified":"2023-03-15T16:08:10","modified_gmt":"2023-03-15T21:08:10","slug":"valoracion-de-marcas-fusiones-adquisiciones","status":"publish","type":"post","link":"https:\/\/pdv-a.com\/en\/2023\/valoracion-de-marcas-fusiones-adquisiciones\/","title":{"rendered":"Brand valuation, accounting standards in mergers and acquisitions"},"content":{"rendered":"
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We reviewed the accounting standards for the valuation of identifiable and non-identifiable intangible assets and trademarks in mergers and acquisitions processes.<\/h5>\n
Our main conclusion is that post-transaction profitability and brand value should be reported annually (in the company's annual report).<\/h5>\n

If the value of the acquired intangible asset has decreased or increased, an explanation to the financial markets should be provided as to why this occurred. We also reviewed methodological issues in carrying out these calculations, with an emphasis on understanding the intangible value of trademarks and registered trademarks versus customer-related relationships, and highlighted the importance of marketing in guiding and directing these disclosures.<\/p>\n

Es importante para una marca (valoraciones de marcas) entender las implicaciones contables de las fusiones y adquisiciones.<\/strong><\/p>\n

The focus is on the financial interaction between the brand and accounting in companies, addressing two accounting anomalies related to the valuation of acquired and internally generated brands.<\/p>\n

It is proposed that companies adopt the strong version of the efficient market hypothesis and provide additional information in the management's discussion and analysis (MD&A) section of the annual report to track the performance of acquired brands, showing both increases and decreases in value.<\/p>\n

This would be beneficial for investors and lenders, as well as the marketing function, which should be responsible for measuring and reporting on the value of acquired brands.<\/p>\n

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Brands can be considered part of a company's economic value, but not of its accounting value.<\/strong>.<\/p>\n<\/blockquote>\n

It may be suggested that companies do not disclose information about the value of their brands for fear of criticism or even termination of top management as an implicit risk that should be analyzed by external auditors.<\/p>\n

Purchase premium<\/strong><\/p>\n

In recent years, numerous intangible assets have been recorded on companies' balance sheets under IFRS and FASB standards, due to the many mergers and acquisitions transactions carried out under these standards.<\/p>\n

We ask ourselves, what proportion of the purchase price represents a premium over the company's net asset value?<\/p>\n