Valuation

Valuation of 21st century assets: intangibles

Investments in intangible assets is ascertained to be in excess of trillions of dollars at present, several investment banks and accredited research companiesestimate a varying trillions if  dollar investments in intangible assets globally. Business stake holders question the capitalized value of these intangibles, they question whether value estimated is informative and conservative to rely on. Hence emergence of intangibles requires a need for clear understating and estimates of value invested or capitalized in intangibles that further require fair and well defined principals of accounting and valuation.

Emergence of Intangibles Assets

Until during 20th century, tangible assets were considered to be the main source of commercial and economic value. Fixed asset such as buildings, land, manufacturing units were considered to be the main drivers of economic value or the financial assets such as stocks, bonds and derivatives would serve purpose. Till then only fixed assets or financial assets were presented in the financial statementsand were valuedbased on their cost and/or outstanding value. Even today the priority of company’s evaluation is based on profitability and performance and the focus is still on fixed or financial assets excluding intangible assets, for example, estimating return on investments, evaluating the value of tangible assets or equityor bonds or derivatives etc. Because there is no significant value of intangible assets present in the accounting books or financials, therefore they are not included in performance evaluations, such as relative and absolute price, and book value ratios etc.

But in the past two to threedecades of the 21stcentury the awareness of creating value for shareholders has changed dramatically. Stakeholders view intangible assets like Research and development, brand name, technology, patents etc. as the main drivers of value creation. Investment in intangible assets is growing fast, in some cases investment in intangibles exceeds investment in traditional capital such as machinery, equipment and buildings. Intense global competition, connected multinationals, informative and specialized boutique companies, emerging business models, and the growing importance of the services sector have all togethermagnified the importance of intangibles to firms, industries and economies.

The global business environment is focusedon policies that help in accumulation of intangible value and seek to provide new sources of growth. Intangibles are addressed well in developed economies but concerns also exist that stakeholders might undermine investment in intangible assets. Policymakers in many emerging economies are recognizing the need of developing intangible assets is necessary for value addition.

Belowlisted are some of theprimary reasons that require business valuation or accounting of intangible assets:

  • Intangibles are the main driver of modern economies. Ways to quantify investment in intangible assetsare required to recognize and exploit opportunities in businesses. Modern businesses rely onsurveys, patents registered, royalty and licensing transactions, spending on R&D or designetc. to ascertain the trend.
  • Determining price of an intangible or a combination of intangibles in transaction pricing and structuringthat require sale of intangible, allocation of equity in a new venture wherein investors contribute different intangible assets and or asset allocation in the process of liquidation as at instances investors receive intangible assets in exchange for their ownership.
  • Intercompany usage and ownership transfer requiredfor transfer of intangible assets to a subsidiary. Appropriate cost allocation and inventory pricingis requiredwhere development or usage of an intangible is shared by multiple entitiesthat might be related or unrelated.
  • Purchase price allocations of acquired assets in a business combination, goodwill and asset impairment testing and or accounting for assets of a re-organized entity require financial accounting and fair value reportingthat is implied by government and regulatory authorities.
  • Tax planning and accounting compliance is also required for purchase price allocations, depreciation and amortization for purchased assets, charitable contribution deductions for donated intangible assets, intercompany transfer pricing of intangible assets cross-border subsidiaries of Multinational Corporation, state and local property tax related to exempt intangible assets etc.
  • Intangibles are also used for financing collateralization and securitization Primarily cash flow-based intangible assets are used as a collateral for corporate financing and are also used for lease back or license back financing.
  • Intellectual property royalty rate analysis in infringement claims, breach of contract or non-compete agreement damages claims and or seizure, impounding or other tort claims are some of the examples that require litigation and dispute relatedvaluation of intangible assets.Custodial inventory of both owned and licensed intangible assets, assessment of insurance coverage on intangible assets, defense against infringement, torts, breach of contract, and other corporate allegations require valuation for corporate governance and regulatory compliance.
  • Intellectual property joint venture, joint development and or joint commercialization agreements require to account and value for management Information and strategic planning

Intangible assets are identified in almost all the industries in various forms, like:

  • Player contracts, stadium lease, sponsorship agreements, luxury suits agreements, coach and management agreements in sports industry.
  • Copyrights, patents, critical employees, and research and development are key intangible assets identified in the computer companies and technology industry.
  • Intangible assets such as publishing rights and essential talent personnel are of significant value in the entertainment and media sector.
  • Patents of formulas and recipes and brand name recognition are well recognized in the highly competitive consumer products and services industry.
  • The healthcare industrygenerally have a high proportion of investment in intangible assets like brand names, valuable employees, and research and development of medicines and methods of care.
  • Patented technologies and brand names are pertinent within the automobile industry or transportation sector.

It’s evident that recognizing, accounting and valuation of intangible assets is the essence in modern business world. With the growing investment and recognition of intangible assets there is an implied need of industry experts, valuation specialists and data providers to capture the fair and reliable estimate of investment in intangible assets. 

Explore the Charms of Mumbai

Explore the Charms of Mumbai in a Cosy Manner!

In the case, you are a traveling buff and love to explore new destinations and sites,then Mumbai should have a spot on your traveling list. Indeed, this is not just the commercial capital of India but it has many tourist destinations that will make you fall in love with it. After all, the city is not just the land of dreams but land of enjoyment, pleasure and delight too.

What to do about stayover?

Once you are in Mumbai, hotel booking in Mumbai is not going to be difficult. Just check out the best hotels and pick the one that suits your needs. The best part is that there are many good hotels that charge you for only the time that you spent therein. It means you will not have to spend a price for a whole day when you can spend for only the hours that you have spent in a hotel.  And icing on the cake is that you will not have to wait till twelve noon to check-in.  Similarly, you will not have to check out at eleven in the morning if your flight is late in evening. Just pick the slots as per your convenience and explore the wonders of Mumbai!

A few spots you must not miss in Mumbai

There are many places that everyone should visit while in Mumbai. Below are some of them:

Gateway of India

One of the most popular tourist fascinations in Mumbai is Gate way of India.  This spot is situated in South Mumbai that is the richest area of the entire country. This spot was constructed during the realm of British Raj in India. The height of gateway of India is 26 m and it was opened on 4th December, 1924. This monument is beautifully built with Indo-Saracenic Revival architecture panache. You can find many tourists revolving around this spot and capturing moments in cameras! It is needless to say that every day, thousands of visitors visit this historical monument.

Haji Ali Dargah

It is one of the most prestigious and Holy places for Muslims in India.  It is situated on an islet off coast of Worliin South Mumbai.  It possesses a height of around 26 m and its gorgeous architecture is based on Indo-Islamic chic. You can find a great merriment, spirituality and splendour at this spot. Even if you are not a Muslim, you can experience the richness of this holy spot!

Essel World

Do you like to go on adventurous rides? Are you one of them who love thrill and amusement? If yes, then go ahead and visit Essel World. It is one of the most famous amusement parks in India. It is also one of the biggest theme parks of India that is owned by Pan India ParyatanPt. Ltd.  People can experience enjoyment here within the time duration between 09:00 AM to 07:30 PM on the days. This place wills surely going to fill with amusement and excitement.

Thus, these were just a few tourist spots of Mumbai. Once you are there, you can explore as many as per your desire!

Farmstays

5 Ultimate Reasons Why Farmstays Are A Fabulous Holiday Destination

Are you sick of busy and hectic city life and want to give yourself some rest?Don’t worry, you are not alone. Just like you, millions of people across the world are struggling with the booming city noise, terrible traffic fumes, and a lot more, wishing to locate a place where they could get some fresh air and peace of mind. What if you could find such a heavenly place near you? Yes, you are reading it right. The best answer to all these questions is farmstays. Farmstaysaround the world offers you a lot of things along with giving you an opportunity to leave the hassle of city life.  Let’s have a roundup of things making farms a fabulous holiday destination.

Reinforces family bonding

Getaways to beaches and megacities are usually hectic making it really difficult for you and your family members to spend quality time, but holidays planned at farms are totally different. They let your family get closer and participate in different farm activities together. Along with providing a peaceful environment, farmstaysbrings happiness for your family.

Plethora of activities to have fun

Staying at farm gives you a chance to better know farm animals and other doings. You can choose to feeding and caring animals, harvesting, horse or camel riding, hay making, cropping, sheep work, and a lot more. During your stay at farm, your kids can satisfy their curious minds by making them indulge in various fun-filled farm activities.  Besides, you can enjoy bonfire, bushwalking tracks, pool activities, etc.  Farmstays would uncertainly give you lots of joy and fun things to do.

Relish healthy food

At farms, along with fresh air you can have the taste of fresh food as well. Most of these places even allow you to get involved in the cooking and know some traditional secret recipes. So, during your stay at such a place you can skip unhealthy fast foods and get pleasure in having yumlicious healthy food.

Epitome of relaxation

Apart from letting you enjoy the sound of chirping birds, wind and whistling leaves, and many other occasional things, farmstays offers you a real calmness. At such a place, you can write a book or take a relaxing nap underneath a tree shade. For those, who want to relax their mind and want to meditate without any interruption, farmstays Victoria are the best option to go for.

Lead tension-free life without gadgets

These days, not only adults but kids are also addicted to make use of gadgets and internet, making you far from the relaxing life. By planning a getaway to a farm will not only allow you to spend quality time with your family but also help you to be away from you laptop screens for some time. Thus, you can give some rest to your eyes and reach the heights of relaxation.

Endnote

Farmstays, undoubtedly, offers best as well as unique holiday experience. Offering huge happiness to hundreds of thousands of people around the world, these places are becoming sizzling new holiday destinations these days. Why waiting? Book you ride and get set to taste the freshness of countryside by spending a week or more in farmstays.

Business Loan

How To Get Business Loan In India

It has been some time now since the small and medium enterprises have been exploring the vast scope in financing. Unlike a decade ago, financial institutions are inclined towards providing a tailor-made loan product which can cater to the business needs. However, most of the financial institutions have a stringent policy which makes it quite hard for SMEs to obtain Business Finance. This makes it difficult of small and medium industries to work things out during the financial crunch. Continue Reading

flip up helmets India

Know the Features That Makes the Modular Helmets a Best Fit While Riding a Motor Cycle

In the recent years, modular helmets have become popular and considered safe by the motorcycle riders. The modular helmets have a flip front that becomes an open helmet by flipping it upwards. The same covers the full face by flipping it downwards. If you frequently travel on a motorcycle, then you must switch to modular helmets. Know more benefits of using modular helmets.

The Features of Modular Helmets

Modular helmets have chin bar and risible face section. When you are driving your motorcycle, you must flip its front in the downward direction.

Flexibility

As mentioned in the introduction, modular helmets are very flexible. It can provide convenience to your face as an open-faced helmet when you travel a short distance. But, if you decide to go for a long drive, then you must flip the front section in the downward direction to protect your face. It is evident from this that modular helmet offers both benefits of open and closed type helmet. You can enjoy the comfort without compromising on the safety. Hence look for flip up helmets buy online India. When you are not driving, you can turn over the front section and converse or eat something. Flexible features of modular helmets allow you to carry it along with you all the time. Unlike traditional helmet which is very rigid and most of the time, you may not want to wear that heavy on your head. At the same time, the modular helmet is not light in weight. It protects your head from injury.

Another flexibility feature offered by flip-up helmets is, you can use it easily even if you wear spectacles. Most of them find it a difficult process to remove the glasses every time while wearing and removing the traditional helmet. It is because you can wear your modular helmet and simply flip up the front section to wear or remove glasses. You must consider buying flip up helmets India for a safe drive. Damage of glasses can be prevented by make sure that the front face flip is in the raised position. After wearing the glasses, you can just put the front part back to the position and cover your face.  Not only people will prefer this but also others due to its easy open, and close feature allows it to offer great comfort while riding the vehicle.

Design

The modular helmets are devised uniquely and hence assist in offering the best protection during your drive. Apart from giving protection, the helmet design also covers your head very tightly. It prevents your head getting exposed to sunlight and rain. Ears, necks, and eyes are also protected. The flip up front section gives a clear visibility to drive in rain, fog or mist. Even during a dusty wind you can drive effortlessly without any disturbance caused.

Cost

Do not worry about the price. Having given that it offers so many benefits when compared to the usual helmets, it does not cost you more. For the features it has, yet it is very much affordable.

When you afford to buy a motorcycle, you must not think twice to make your travel safe.