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Valuation of Intangible Assets: Should Brand Equity Be Accounted for on the Balance Sheet?

By Brooke Wasserman


Brand valuation has become a commonplace tool for assessing company performance related to marketing and promotions of businesses. However, current U.S. and international accounting standards inhibit the recording of brands as assets on financial statements due to their intangible nature. This paper discusses the importance of understanding the contribution that brands provide to companies and outlines the potential options for reporting any associated intangible assets on financial statements. I suggest that additional reports should be included alongside currently required financial statements to record brand value separately from the other statements. The intangible brand assets should not be placed as a line item on the balance sheet due to the ambiguity involved in valuing them

Topics: Accounting, Brand Value, Brand Equity, Intangible Assets, Accounting
Publisher: OpenCommons@UConn
Year: 2015
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