What is the calculated intangible value?
The calculated intangible value of the company is a means to place the exact value on the intangible assets currently in possession of the company. It must not be confused with the net current value (NPV), which is one factor that is charged in the process, the calculated intangible value is a specific formula that focuses on the current accounting value of the company. The cumulative accounting value is then deducted from the current market value of business. As part of the calculation of CI, it is necessary to confirm the average earnings of the company in the last three calendar years. Using the same three -year period, the average of the year for tangible assets, along with the return on the assets of the company, is also taken into account.
The next step in determining the calculated intangible value begins with the determination of the average return on the assets for the industry, which is part of the company. The excessive return on assets is taken into account by multiplying the average return on assets of industry by the average year of the company's palpable assets. The resulting value is then readENA from the average earnings before a distance in three years.
In addition, determine the average income tax rate for a given period and multiply this amount of excessive return. Subtract this character from excess return. This process creates a figure known as an excessive return after taxation. The last step is to calculate the net current value of this number and then reduce the result using the company's capital costs as a discount rate. These final numbers will represent the calculated intangible corporation value.
Understanding the calculated intangible value of the intangible assets of the Company for this period is value that it helps to assign accurate and stable value to these assets. However, the opponents of the whole process associated with the determination of the calculated intangible values believe that this number is of no permanent importance, because even intangible assets are subject to depreciation and willOlísat in its true value.