ABSTRACT
This chapter examines the legal nature of "true and fair" intellectual property (IP) information disclosure in a corporate governance context in order to protect shareholders and assist company directors to meet existing obligations under UK company law. It analyses why the key methods for valuing intangibles are inadequate and unhelpful in the case of patents, as corporate assets. The chapter explores the intersecting relationship between the requirements of International Accounting Standard for Intangibles, the characteristics of legal patent monopolies and the changing concept of corporate governance under the rubric of "shareholder value" It explains how patent assets are presented in financial statements and highlights the problems involved when accounting for intangibles. Individual company accounts comprise a balance sheet and a profit and loss account. The "uncertainty" factor that surrounds the techniques and practices of quantitative and qualitative patent valuation is the principal barrier to the development of IP and patent-backed lending.
