 Monday, 06 September 2010 |
 |
 |
|
|
| |
| Homepage
> ISO Norm on brand valuation close to adoption
|
ISO Norm on brand valuation close to adoption
The international norm ISO/DIS 10668 for brand valuation methods is currently being finalized and should be published by summer 2010.
Since quite some time, companies owning well-known brands have been trying to find reliable calculation methods to estimate their monetary value in balance sheets, to convince potential investors or buyers.
Advertising agencies on the other hand have been trying to calculate the effect of advertising and other marketing practices on brand value, to prove the added value of advertising and marketing.
ISO/DIS 10668 will specify the requirements for procedures and methods to measure the monetary value of a brand.
The norm gives the necessary requirements for three approaches to brand valuation:
• The Income Approach, based on the measurement of the brand value according to the present value of its economic benefits;
• The Market Approach, which measures the value of the brand based on what other purchasers in the market have paid for similar assets;
• The Cost Approach, which measures the value of the brand according to the cost invested in the brand.
One of the potential problems posed by the current draft text, seems to be the obligation for companies to have the evaluation undertaken by a major marketing institute, which will limit the possibility of brand evaluation according to this norm to major multinational companies while excluding SMEs.
The draft text of the norm can be bought here
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=46032
|
|
|
|
|
|
