Issuance of Circular 37 on trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets

Issuance of Circular 37 on trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets

On May 16, 2024, trực tiếp bóng đá k+ Minister of Finance issued Circular 37/2024/TT-BTC, which sets forth trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets.

Circular 37/2024/TT-BTC takes effect from July 1, 2024, replacing Circular 06/2014/TT-BTC.

According to Article 4 of trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets issued with Circular 37/2024/TT-BTC, trực tiếp bóng đá k+ following types of intangible assets are regulated:

[1] Intellectual property assets and intellectual property rights as provided by trực tiếp bóng đá k+ laws on intellectual property.

[2] Rights that generate economic benefits for specific parties under civil contracts as stipulated by trực tiếp bóng đá k+ law, such as commercial rights and mineral exploitation rights.

[3] Non-contractual relationships that bring economic benefits to parties, relationships with customers, suppliers, or other entities, for example, customer lists, databases.

[4] Other intangible assets that meet trực tiếp bóng đá k+ following conditions:

- There is tangible evidence of trực tiếp bóng đá k+ existence of trực tiếp bóng đá k+ intangible asset.

- trực tiếp bóng đá k+ intangible asset has trực tiếp bóng đá k+ potential to generate income.

- trực tiếp bóng đá k+ value of trực tiếp bóng đá k+ intangible asset can be quantified in monetary terms.

Issuance of Circular 37 on trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets - image from internet

What factors shall be considered when estimating trực tiếp bóng đá k+ economic life of an intangible asset in Vietnam?

Based on Article 5 of trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets issued with Circular 37/2024/TT-BTC, trực tiếp bóng đá k+ estimation of trực tiếp bóng đá k+ economic life of intangible assets is regulated as follows:

Estimating trực tiếp bóng đá k+ economic life of intangible assets:

1. trực tiếp bóng đá k+ economic life of intangible assets is influenced by legal, economic, technological, functional, and market factors, such as market size and prospects, trực tiếp bóng đá k+ development of science and technology, trực tiếp bóng đá k+ uniqueness and differentiation of intangible assets, and trực tiếp bóng đá k+ competition among similar intangible assets. trực tiếp bóng đá k+ economic life can be a finite or infinite period.

2. When estimating trực tiếp bóng đá k+ economic life, trực tiếp bóng đá k+ following factors should be considered:

a) trực tiếp bóng đá k+ legal protection period for intangible assets, specifically intellectual property rights;

b) Provisions in civil contracts, as stipulated by trực tiếp bóng đá k+ law, that are associated with trực tiếp bóng đá k+ intangible assets being appraised;

c) Decisions of trực tiếp bóng đá k+ court or relevant authorities regarding trực tiếp bóng đá k+ intangible assets being appraised;

...

Therefore, estimating trực tiếp bóng đá k+ economic life of intangible assets requires considering trực tiếp bóng đá k+ following factors:

- trực tiếp bóng đá k+ legal protection period for intangible assets, specifically intellectual property rights.

- Provisions in civil contracts, as stipulated by trực tiếp bóng đá k+ law, that are associated with trực tiếp bóng đá k+ intangible assets being appraised.

- Decisions of trực tiếp bóng đá k+ court or relevant authorities regarding trực tiếp bóng đá k+ intangible assets being appraised.

- Economic factors such as trực tiếp bóng đá k+ market size and prospects of products or services associated with trực tiếp bóng đá k+ intangible assets being appraised.

- trực tiếp bóng đá k+ development of science and technology, trực tiếp bóng đá k+ emergence of similar or more efficient intangible assets, leading to trực tiếp bóng đá k+ obsolescence of trực tiếp bóng đá k+ functional and economic aspects of trực tiếp bóng đá k+ intangible assets being appraised; other relevant scientific and technical factors.

- Statistical and analytical results (if available) related to trực tiếp bóng đá k+ intangible assets being appraised.

- Other factors relevant to estimating trực tiếp bóng đá k+ economic life of trực tiếp bóng đá k+ intangible assets being appraised.

What are regulations on trực tiếp bóng đá k+ income approach used to determine trực tiếp bóng đá k+ value of intangible assets in Vietnam?

Based on Clause 2 Article 14 of trực tiếp bóng đá k+ Vietnam Valuation Standards on trực tiếp bóng đá k+ Appraisal of Intangible Assets issued with Circular 37/2024/TT-BTC, trực tiếp bóng đá k+ income approach to determine trực tiếp bóng đá k+ value of intangible assets is carried out as follows:

Step 1:Identify trực tiếp bóng đá k+ expected revenue streams generated from trực tiếp bóng đá k+ use of trực tiếp bóng đá k+ intangible assets being appraised.

Step 2:Determine trực tiếp bóng đá k+ net income after deducting raw material and labor costs, depreciation (if applicable), selling and business management expenses, other costs, and corporate taxes (if applicable).

Step 3:Determine trực tiếp bóng đá k+ contribution of trực tiếp bóng đá k+ assets contributing to trực tiếp bóng đá k+ income associated with trực tiếp bóng đá k+ use of trực tiếp bóng đá k+ intangible assets being appraised.

Step 4:Determine trực tiếp bóng đá k+ net income generated specifically from trực tiếp bóng đá k+ intangible assets being appraised by deducting trực tiếp bóng đá k+ allocated capital usage expenses for other assets and adding trực tiếp bóng đá k+ depreciation of trực tiếp bóng đá k+ contributing assets, which are fixed assets, to obtain trực tiếp bóng đá k+ net cash flow generated from trực tiếp bóng đá k+ intangible assets being appraised.

Step 5:Determine trực tiếp bóng đá k+ value of trực tiếp bóng đá k+ intangible assets being appraised by using an appropriate discount rate to present value trực tiếp bóng đá k+ net income generated specifically from trực tiếp bóng đá k+ intangible assets being appraised.