Assessment of brand value

With regard to the valuation of brands, there are many studies, concepts, methods, standards, recommendations and legal decisions. However, not all of them can be applied in practice, because evaluating the value of a brand from an economic point of view and the value of a brand in accordance with existing accounting and financial accounting standards is not an iden­tical valuation process, which is complicated by the procedure for recognizing a brand as an intangible asset, the opportunities and condi­tions for clarifying its value, understanding its market capitalization and its reflection in the balance sheet or the impossibility and inexpe­diency of such reflection, understanding the strength of the brand (on the example of the Apple brand) and branding (on the example of the Apple and Microsoft brands). This situation requires to study: the condi­tions under which a brand can be recog­nized as an intangible asset; what exactly can be consi­dered the value of the brand as an intangible asset; exactly what brand value can be reflected in the companyʼs balance sheet and under what conditions; why there is a frantic gap between the companyʼs book value and its market capitalization, what can be affected by a change in the market capitalization of the brand and how reputational risks can affect a change in the market capitalization of the brand. A compre­hensive overview of the complexity and multifac­torial nature of asses­sing the value of brands and its reflection in the financial statements of companies is offered. Hypothesis: There is only one meaningful form of value for evaluating and verifying the brand value: the price a buyer is willing to pay for the brand in a real deal. In the process of research, scientific methods of theoretical generalization and grouping were used (to systematize methods, methodologies, estimates of the value of brands and their analysis); formalization, analysis and synthesis (for interpretation of analytical materials); logi­cal generalization of results (formulation of conclu­sions). The existing opportunities, condi­tions and procedures for recognizing a brand as an intangible asset and assessing its value were considered and analysed; it was found that brands are increasingly not recognized as an intangible asset and their value is not included in the balance sheets of companies. Estimating the value of a brand as a separate intangible asset remains a problematic issue because of the valuation itself, its confirmation and annual revaluation, value fluctuations, which is compli­cated by the lack of an effective (active) market and a consistent procedure and practice for assessing brand value