Intangible assets in plain business language

Purpose The purpose of this paper is to present valuation, economic, and corporate management aspects related to the design and implementation of intangible asset valuation in common business language. Design/methodology/approach The methodology or approach to identifying or naming intangible assets within the business environment was used. Findings The purpose of intangible asset valuation is to understand what the intangible asset is and how it affects the bottom line of the business. Understanding the reason for the intangible asset valuation, whether for tax purposes, corporate planning, or dispute resolution, is paramount when considering the nature of the intangible asset to be valued. Originality/value Intangible assets are generally not included in active company management. Many companies do not recognize or investigate ways to maximize the income to be derived from intangible assets or other benefits of a centralized intangible asset management program. Fundamental to valuing intangible assets are their identification and subsequent representation. As presented in this paper, the three categories of intelligence identify intangible assets by the business value drivers that comprise them.