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Perspectives Paper: Rethinking Brand Value

28 September 2022

In this paper, Part 3 of our series, we take a deeper dive into brands and reputation value creation

The limitation of the current reporting frameworks to convey value creation and preservation activities is largely because the prevailing value creation strategies that existed when the standards were enacted decades ago, have evolved. As many current business models have evolved over decades, namely, to rely more heavily on intangible assets at the expense of tangible, the standards and the economics have become misaligned. This article series looks to contribute to realigning accounting and reporting standards with the value creation and preservation strategies utilised in modern business models.

In Parts 1 and 2 of our series, we examined the Case for Realigning Reporting Standards with Modern Value Creation and took a deep dive into human capital value creation and measurement. In this paper, Part 3 of our series, we take a deeper dive into brands and reputation value creation.

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One Comment

  • To the Authors of the Perspectives Paper 3: Rethinking Brand Value

    I have read this Perspectives Paper with great interest. It didn’t convince me. I find it in parts speculative and mostly biased. The conclusions are based on superficial analysis.

    The paper suggests that brands tend to be undervalued today. The paper does not provide a single reliable indication for this. It also provides no indication for which assets are overvalued at the expense of brands.

    My dissenting view is based on knowledge of over 3,000 unpublished trademark license agreements, knowledge of all trademark license agreements in the public domain, and knowledge of 13,700 brand valuations conducted as part of business combinations.

    I’m a big fan of the IVSC. I presented myself to the Standards Review Board in Zürich in 2019. In my opinion, this paper does not meet the quality standards of the IVSC, even if it is “only” a perspectives paper.

    In the attached word file I comment on individual passages of the paper.

    I appreciate your feedback, and I am open to discuss and defend my views in more detail.

    Kind regards,
    Christof Binder, PhD, MBA

    IVCS paper on brand value CBi comments

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There are more than 180 member organisations
of the IVSC, operating in 137 countries worldwide. Join them.

Become part of a global network working to enhance valuation standards and professionalism.