I think that brands should be represented on the balance sheet. The truth is that brands can be an incredibly valuable asset. Companies spend a lot of time, money and other resources to develop the value of brands. Powerful brands can make significant difference in the level of sales from one competitor to another and the market recognizes these facts and adjusts the share price accordingly.
Often many advertising and marketing campaigns spend significant amounts of money just to increase the value of a brand. Noting that ROI on campgaings is key, without the brand asset on the company balance sheet it seems as though cash was used without any return.
I understand that brands may be hard to value and the value may fluctuate from year to year, but there are plenty of other assets that are included on the balance sheet that are also difficult to evaluate. Brands could be evaluated every year just like goodwill is. Also, brands from acquired firms are placed on the balance sheet, so see no reason why a homegrown brand shouldn't receive the same accounting treatment. I think there is very little debate that the value of brands is essential to the overall value of a firm and as a result should appear on the balance sheet.
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