For this assignment, research two contemporary accounting topics, such as valuing intellectual capital and International Financial Reporting Standards (IFRS), and how these standards differ from...

Expansion of Commonwealth Bank in Asia
Finance: Corporate Finance
Valuing intellectual capital:
Valuation analysts &professionals agree that on common grounds there are three standard methodologies to value an Intellectual Property:
1. Cost Approach: Historical cost incurred to develop an asset is used to determine its value. However, the incurred mostly is not representative of its ultimate value. This approach is less accurate for used with products that have reached the market and generated revenues. Generally, the cost approach is better suited to analysis of IP’s and products that have not yet been developed commercially, or that could be re-created quickly, as it reflects the cost a company could avoid by purchasing, rather than duplicating, a similar development effort.
2. Income Approach: This approach calculates the present value of future cash flows/income streams specifically incurred in due respect of the intellectual property asset. This method utilizes forecasted financial results based on factors such as historical financial results, industry trends, and the competitive environment.
3. Market Approach: Generally, the market approach values the IPs by comparing the original asset to publicly available/recently held/equivalent transactions done involving similar assets & similar uses. This indicates a value if an active market exists that can provide examples of recent arm’s-length transactions, with an adequate information & pertaining to required terms & conditions.
4. Relief from Royalty: A hypothetical situation to estimate what a business can pay to or bear the cost of licensing its own intellectual property in an arm’s-length transaction. Value is calculated as per the present value & discounted to avoid any hypothetical charges.
The decision which approach to use is based on four factors:
a. Uniqueness of the asset.
b. Data Availability and verifiability.
c. Context, purpose & objective of the analysis.
d. Judgment of analyst which is based on extensive earlier experience.
In addition to the above methods explained there are other methods that can be shared those are profoundly adapted in the...