Date of Original Version
In this manuscript a review of the estimation theory proposes a solution to the problem of finding the economic (dollar) value of intellectual property rights. Specifically, during periods of acquisition and or mergers, the problem arises during acquisitions and mergers because firms have trademarks, patents and similar items which have value and are a significant part of the economic activities. Financial account often ignores the methods established earlier by experts in the field of financial accounting because they are inexpert in estimation methods and/or suggestions by agencies that rule and prescribe solutions to assess and estimate the value of intellectual property rights.
Since estimation methods are now commonplace in accounting, this manuscript suggests the use of these methods to place value on items such as patents, trademarks and similar items. In three cases, the manuscript produces viable and testable results that should bring financial account from pure guess or worse, avoiding the problem entirely. In addition, the author suggests alternative method by which one estimates the value of intellectual property rights. These additional methods should produce practical valuation methods which are based on science, data analysis and data analytics. No longer would analysts have to rely on the changing value of Goodwill to be a substitute for data science and account analytics.
Jeffrey E Jarrett (2017) Intellectual Property and the Role of Estimation in Financial Accounting and Mergers and Acquisitions. SF J Intel Proper Rights 1:1. Retrieved from http://scifedpublishers.com/fulltext/intellectual-property-and-the-role-of-estimation-in-financial-accounting-and-mergers-and-acquisitions/21570
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