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Intangible valuations - the expert view

Article Abstract:

Hambros PLC has developed a test for determining the value of intangible assets as required by the Accounting Standards Committee's Statement of Standard Accounting Practice 22 and TR 738. According to their tests, assets must be capable of producing revenue on their own, and they must incorporate legally enforceable rights. Additionally, they must be separate and distinct from the underlying cost infrastructure and tangible assets. Hambros' tests recognize that intangible assets do not need to be producing revenue to have a value, and they can be applied to internally generated and purchased intangibles.

Intangible property, Intangible assets, Hambro America Inc.

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Accounting for uncertainty

Article Abstract:

Convertible bonds with redemption premium options raise some difficult accounting problems. The main issue is whether the premium should be accrued over the period to the date when it may be exercised, or if redemption should merely be noted as a contingency. Convertible preference bonds should be treated no differently from bonds with similar features. The SEC rules in the US require the use of systematic accrual.

Convertible bonds

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