Ministry of Finance Asset Valuation Guidelines - Intangible Assets

Issued: July 23 2001
Effective: September 1 2001
Applicability: These Guidelines apply to the valuation of intangible assets and the disclosure of related information. They do not apply to the valuation of leaseholds (Article 2). For the purposes of the Guidelines, "ntangible assets" refer to the resources that have no physical form but can play a long-term role in productive operation and create economic benefits (Article 3).

Main contents: The Guidelines set out the basic requirements with regard to registered asset valuators (Articles 4 to 9). The Guidelines state that a registered asset valuator may be appointed to valuate intangible assets when there is a transfer of intangible assets, investment of intangible assets, a merger of enterprises or an asset disposal (Article 10). The registered asset valuator may carry out the valuation using the cost method, the income method or the market method depending on the specific circumstances of the intangible assets (Article 13). The Guidelines list the matters that the registered asset valuator should pay attention to after a particular valuation method is adopted (Articles 14 to 17). In respect of information disclosure, the Guidelines list the representations that the registered asset valuator is required to make in the valuation report (Article 18). In addition, the Guidelines also prescribe the particulars that must be included in the valuation report, which include the project for which the valuation is made, the subject intangible asset and the valuation method (Articles 19 to 21).