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How to Calculate the Value of Intangible Assets

You know that like tangible asset, we also show the intangible asset in the balance sheet. So, showing the real value of intangible asset, we have to calculate the value of intangible assets. 

1. Calculation of Value on the Basis of Cost of investment of money and time 

You have to calculate the cost of investment of time and money for gaining 

brand, goodwill, trade-mark, copyright and patent and franchises

2. Calculation of Value on the Basis of Income Generating Ability in future

On this basis, we have to check what is the ability of your intangible asset to generate the income. For example, you have the copyrights of 100 books. Its value can be calculated on the annual annual value. 

On this basis, we can calculate the net present value of your intangible asset.

3. Market Value Based 

Market is full of competition. Demand and supply also decides the value of anything. Intangible asset is not its exception. What is the value of intangible assets in similliar company's balance sheet will help you to calculate your intangible assets value. 

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Accounting Education: How to Calculate the Value of Intangible Assets
How to Calculate the Value of Intangible Assets
Accounting Education
https://www.svtuition.org/2022/07/how-to-calculate-value-of-intangible.html
https://www.svtuition.org/
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