Intangible assets on the ascent: Frameworks, valuation methods need to keep up

Singapore

INTANGIBLE assets are gaining traction around the world as a way for investors to evaluate companies. Asset managers in Singapore are beginning to pay more attention to these assets too, but have observed potential pitfalls for the Singapore market in terms of fully understanding and appreciating the value of such intangibles.

Intangible assets include, but are not limited to, brands, software codes, patents, trademarks and external relationships. These assets are seen by some as the secret ingredient or competitive advantage for companies looking to set themselves apart from their peers. As they are not always reported in companies' financial statements, there is the possibility of investors overlooking these assets altogether.