ABSTRACT
This chapter presents a new method of financial brand valuation that is practical for use in financial reporting, purchase price allocations in acquisitions, mergers, and sales of businesses, communications to investors, litigation and insolvency proceedings, and other applications that require consistency with generally accepted accounting standards. The suggested measure of brand value is simple and intuitive. In fact, it models directly the goal practitioners have in mind when they think about separating the brand asset from other assets. The integration of the theories of corporate valuation and brand choice provides a solid theoretical basis for the measure. The only costs arise from market research to calibrate the brand equity share. A 2001 revision of FASBs rules for the treatment of intangible assets such as brands in financial reports included a requirement to recognize intangible assets at fair value, under several conditions.
