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Intangible Asset Valuation in Innovative Technology Firms: Misvaluation Risks and New Assessment
- 1 Business School, The University of New South Wales, Sydney, NSW 2033, Australia
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Abstract
The rapid rise of modern scientific and technological innovation enterprises has injected vitality into the world's scientific and technological development, and at the same time, it has also brought changes and challenges to the traditional measurement methods of financial accounting. Research institutions, finance firms, and experts around the world are skeptical about the applicability of current methods of measuring intangible assets. One of the main reasons for these doubts is that intangible assets, such as patents, goodwill value, etc., play a huge role in the productivity development and profit growth of enterprises. However, this role is easily ignored and underestimated in the process of accounting recognition and measurement under the cost method. At present, the more common fair value valuation is estimated through the external market and the stock market, but the external valuation often leads to misestimation due to information asymmetry, which brings risks to the decision-making of information users. This paper uses the example method and literature analysis method to analyze the insufficient consideration of intangible asset valuation by the traditional intangible asset valuation method and the potential risks caused by M&A and financing. On this basis, the reasonableness of the current trial improvement measures is evaluated, and the relatively reasonable solutions are compared. It explains why the "deep disclosure method" is a relatively safe and operable strategy in the current accounting standards and environment.
Keywords
Intangible Asset Valuation, Fair Value Measurement, Disclosure and Reporting
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Cite this article
Li,J. (2025). Intangible Asset Valuation in Innovative Technology Firms: Misvaluation Risks and New Assessment. Advances in Economics, Management and Political Sciences,146,148-154.
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Volume title: Proceedings of ICFTBA 2024 Workshop: Human Capital Management in a Post-Covid World: Emerging Trends and Workplace Strategies
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