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Article
Publication date: 11 July 2016

Mark Russell

The purpose of this paper is to value the patents of pharmaceutical companies using discounted cash flows, and compare the value-relevance of these assets against alternative…

1881

Abstract

Purpose

The purpose of this paper is to value the patents of pharmaceutical companies using discounted cash flows, and compare the value-relevance of these assets against alternative intangible asset measures such as reported intangible assets and R & D capital.

Design/methodology/approach

The study values pharmaceutical intangibles using three methods: an income method; the sum of unamortised R & D expenditures; the firm’s reported intangible assets. Value-relevance tests use ordinary least squares regression and Vuong and Clarke tests.

Findings

First, the study finds that the discounted cash-flow valuation of pharmaceutical patents is value-relevant. Second, the value of pharmaceutical patents explains market value better than reported intangible assets but not R & D capital. However, the valuation of pharmaceutical patents is more consistent with the risks of R & D than the valuation of R & D capital which assumes recovery of R & D expenditure.

Originality/value

This is the first known study that values patents using an income method and compares those valuations with reported intangible assets and R & D capital valuation models.

Details

Journal of Intellectual Capital, vol. 17 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 September 1994

Peter Young

Discusses the valuation “public sector assets” comprising public parks,infrastructural assets (roads, drains, water supply, etc.), hospitals,schools, universities and the like;…

1474

Abstract

Discusses the valuation “public sector assets” comprising public parks, infrastructural assets (roads, drains, water supply, etc.), hospitals, schools, universities and the like; and takes a passing look at the modern public sector accounting practices which appear to create a need for such valuations. The question about Cwhether or not accounting and valuation technicians and definitions which are applied to private sector profit making commercial organizations can be applied to public sector non‐profit making entities is also examined. Since, in most cases, there is no market for such assets does a valuation serve any useful purpose in any accounting, accountability or management framework? Indeed, are the utilities used by public sector organizations strictly “assets” as that term is normally understood? What “bundle of rights” attaches to such public facilities as parks and roads? To the entity responsible for the provision and maintenance of such “assets” are they not more in the nature of liabilities?

Details

Journal of Property Valuation and Investment, vol. 12 no. 3
Type: Research Article
ISSN: 0960-2712

Keywords

Article
Publication date: 1 April 2001

Peter Wyatt

Publishes some of the findings of a research project that examined whether valuers and valuations have a role in the provision of more strategic property advice to business…

1713

Abstract

Publishes some of the findings of a research project that examined whether valuers and valuations have a role in the provision of more strategic property advice to business occupiers. The research consisted of a postal questionnaire survey of over 250 businesses that examined the role of property and the use of valuations in strategic business decisions. The survey was supported by the findings from 18 structured interviews and an analysis of over 70 sets of company accounts. The results revealed that, despite valuers becoming increasingly involved in measuring corporate efficiency and valuations being used for this purpose, business occupiers do not recognise valuers in a strategic role. Instead, many firms see valuers as providing a single valuation service, the estimation of market value for purchase/sale decisions and corporate disclosure. The research suggests that valuations do have a role to play in the provision of more strategic business advice but the valuer will need to understand the client’s wider business needs and how property plays a part in the client’s business. Valuers need to convince clients that they are not overly technical in their outlook, have broad business skills that include strategic thinking and an awareness of business issues.

Details

Journal of Property Investment & Finance, vol. 19 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 April 2001

Timothy Eccles and Andrew Holt

The paper proposes to outline the rules, regulations and generally accepted accounting principles that must be followed when recognising and valuing property in UK financial…

Abstract

The paper proposes to outline the rules, regulations and generally accepted accounting principles that must be followed when recognising and valuing property in UK financial statements. Its aim is to give the professional surveyor or corporate real estate adviser a clear understanding of the underlying principles involved and also the rules and conventions that must be followed. A plethora of new regulations has led to a range of new practices that must be understood by those advising upon corporate property matters. Not least of the reasons are the direct effects property matters now have upon balance sheets and profit and loss accounts. The aim of this paper is to offer corporate real estate managers an overview of the accounting framework in which they must offer advice to businesses. Traditionally, non‐property companies have tended to relegate property matters to advisers, who found themselves excluded from the key strategic decision‐making processes of the company, despite the large amounts of capital frequently tied up in their premises. The rise of facilities management and new forms of serviced office structure began to increase awareness of the issue. However, recent changes to accounting standards by the Accounting Standards Board (ASB) will impact directly upon the balance sheet and profit and loss account. In short, property issues directly impinge upon a business’s ability to report profits. Even so, relatively few property‐related views were put forward as part of the consultation process in the creation of these new standards. The area that has achieved most notice recently has been desire for accurate and consistent valuation and depreciation of assets ‐ including the management and maintenance of properties, and the selection of the property valuer. The basic premise behind such changes was to make accounts more visible and to demand clear logic and rationality of sensible business decisions. The paper deals solely with firms operating as manufacturers or service providers, with no interest in their property except as a place to do business, and an asset held as part of that business. Neither investment properties nor leased properties are discussed here, for reasons of space.

Details

Journal of Corporate Real Estate, vol. 3 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 1 October 1998

Sandy Bond and Peter Dent

Research undertaken by the authors over the last two years has revealed a number of problems in valuing non‐market, non‐investment properties in the public sector. The first part…

2359

Abstract

Research undertaken by the authors over the last two years has revealed a number of problems in valuing non‐market, non‐investment properties in the public sector. The first part of the article draws together some of the literature in the area of public sector asset valuation and management. This is intended, first, to highlight current thinking about the issues involved in the valuation exercise, second, to focus on some of the unresolved aspects and, finally, to suggest areas for further consideration to help resolve these.The second part of the article provides an introduction to, and critical examination of, the valuation methodology commonly used to value specialised property assets. Possible alternative approaches are suggested, which may better enable authorities to assess the performance of their assets and integrate these into the management processes.

Details

Journal of Property Valuation and Investment, vol. 16 no. 4
Type: Research Article
ISSN: 0960-2712

Keywords

Article
Publication date: 1 December 1997

Peter Dent

Considers the nature of local authority assets within the context of overall management objectives. Raises questions about the categorization of public assets and the way in which…

2122

Abstract

Considers the nature of local authority assets within the context of overall management objectives. Raises questions about the categorization of public assets and the way in which they are perceived by local authorities. Analyses research undertaken to examine the compilation of asset registers, the methods for the valuation of these assets, the appropriateness of such methods and the resulting explanations of value. Assesses the recently completed exercise undertaken by UK authorities to record their property asset stock and suggests, in the longer term, how such an exercise could be modified to incorporate more appropriate means of valuing some of its assets.

Details

Property Management, vol. 15 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 January 1996

STEPHEN MORROW

This paper considers whether the prospective services provided by a football player on behalf of the club holding his registration can be recognised as an accounting asset. The…

2829

Abstract

This paper considers whether the prospective services provided by a football player on behalf of the club holding his registration can be recognised as an accounting asset. The first section of the paper considers the appropriateness of treating these prospective services as intangible assets within the terms of the UK Accounting Standards Board criteria for definition and recognition of assets. In the second section, four valuation methodologies are evaluated using case study data made available by a major Scottish club. Each of the methods evaluated is either currently used in accounting practice by some clubs, or is used in some form in the existing market place for players. The historical cost model involves capitalising players acquired by the club via the transfer market on the balance sheet at their cost of registration. The earnings multiplier model applies a multiplier to a player's earnings to produce a current valuation of that player. The third model involves capitalising players at directors' valuation, while the independent multiple player evaluation model involves obtaining valuations for players from various informed sources, knowledgeable on those particular players. The paper concludes that there are convincing arguments for the conceptualisation of the services provided by football players as accounting assets, and recommends an system of valuation in which players are valued at their realisable value by independent experts.

Details

Journal of Human Resource Costing & Accounting, vol. 1 no. 1
Type: Research Article
ISSN: 1401-338X

Article
Publication date: 1 March 2001

K.G.B. Bakewell

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…

18562

Abstract

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Structural Survey, vol. 19 no. 3
Type: Research Article
ISSN: 0263-080X

Article
Publication date: 1 September 2001

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management…

14757

Abstract

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Facilities, vol. 19 no. 9
Type: Research Article
ISSN: 0263-2772

Article
Publication date: 1 March 2001

K.G.B. Bakewell

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…

14367

Abstract

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Property Management, vol. 19 no. 3
Type: Research Article
ISSN: 0263-7472

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