1、raising standards worldwideNO COPYING WITHOUT BSI PERMISSION EXCEPT AS PERMITTED BY COPYRIGHT LAWBSI Standards PublicationBS ISO 10668:2010Brand valuation Requirements for monetarybrand valuationBS ISO 10668:2010 BRITISH STANDARDNational forewordThis British Standard is the UK implementation of ISO
2、10668:2010.The UK participation in its preparation was entrusted to TechnicalCommittee SVS/12, Brand Valuation Services.A list of organizations represented on this committee can beobtained on request to its secretary.This publication does not purport to include all the necessaryprovisions of a contr
3、act. Users are responsible for its correctapplication. BSI 2010ISBN 978 0 580 64260 9ICS 03.140Compliance with a British Standard cannot confer immunity fromlegal obligations.This British Standard was published under the authority of theStandards Policy and Strategy Committee on 30 September 2010.Am
4、endments issued since publicationDate Text affectedBS ISO 10668:2010Reference numberISO 10668:2010(E)ISO 2010INTERNATIONAL STANDARD ISO10668First edition2010-09-01Brand valuation Requirements for monetary brand valuation Evaluation dune marque Exigences pour lvaluation montaire dune marque BS ISO 10
5、668:2010ISO 10668:2010(E) PDF disclaimer This PDF file may contain embedded typefaces. In accordance with Adobes licensing policy, this file may be printed or viewed but shall not be edited unless the typefaces which are embedded are licensed to and installed on the computer performing the editing.
6、In downloading this file, parties accept therein the responsibility of not infringing Adobes licensing policy. The ISO Central Secretariat accepts no liability in this area. Adobe is a trademark of Adobe Systems Incorporated. Details of the software products used to create this PDF file can be found
7、 in the General Info relative to the file; the PDF-creation parameters were optimized for printing. Every care has been taken to ensure that the file is suitable for use by ISO member bodies. In the unlikely event that a problem relating to it is found, please inform the Central Secretariat at the a
8、ddress given below. COPYRIGHT PROTECTED DOCUMENT ISO 2010 All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying and microfilm, without permission in writing from either
9、ISO at the address below or ISOs member body in the country of the requester. ISO copyright office Case postale 56 CH-1211 Geneva 20 Tel. + 41 22 749 01 11 Fax + 41 22 749 09 47 E-mail copyrightiso.org Web www.iso.org Published in Switzerland ii ISO 2010 All rights reservedBS ISO 10668:2010ISO 10668
10、:2010(E) ISO 2010 All rights reserved iiiContents Page Foreword iv Introduction.v 1 Scope1 2 Terms and definitions .1 3 General requirements .2 3.1 Transparency .2 3.2 Validity2 3.3 Reliability2 3.4 Sufficiency .2 3.5 Objectivity 2 3.6 Financial, behavioural and legal parameters .2 4 Specific requir
11、ements.3 4.1 Declaration of purpose .3 4.2 Value concept 3 4.3 Identification of brand.3 5 Valuation approaches and methods3 5.1 General considerations.3 5.2 Income approach.4 5.3 Market approach6 5.4 Cost approach .7 6 Necessary valuation inputs7 6.1 Market and financial data .7 6.2 Behavioural asp
12、ects7 6.3 Legal aspects.9 6.4 Sourcing and use of quality data and assumptions 10 7 Reporting10 8 Independence 11 BS ISO 10668:2010ISO 10668:2010(E) iv ISO 2010 All rights reservedForeword ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies
13、 (ISO member bodies). The work of preparing International Standards is normally carried out through ISO technical committees. Each member body interested in a subject for which a technical committee has been established has the right to be represented on that committee. International organizations,
14、governmental and non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. International Standards are drafted in accordance with the rules given in the ISO/
15、IEC Directives, Part 2. The main task of technical committees is to prepare International Standards. Draft International Standards adopted by the technical committees are circulated to the member bodies for voting. Publication as an International Standard requires approval by at least 75 % of the me
16、mber bodies casting a vote. Attention is drawn to the possibility that some of the elements of this document may be the subject of patent rights. ISO shall not be held responsible for identifying any or all such patent rights. ISO 10668 was prepared by Project Committee ISO/PC 231, Brand valuation.
17、BS ISO 10668:2010ISO 10668:2010(E) ISO 2010 All rights reserved vIntroduction Intangible assets are recognized as highly valued properties. Arguably the most valuable but least understood intangible assets are brands. However, reliable values need to be placed on brands. This International Standard
18、provides a consistent, reliable approach to brand valuation, including financial, behavioural and legal aspects. BS ISO 10668:2010BS ISO 10668:2010INTERNATIONAL STANDARD ISO 10668:2010(E) ISO 2010 All rights reserved 1Brand valuation Requirements for monetary brand valuation 1 Scope This Internation
19、al Standard specifies requirements for procedures and methods of monetary brand value measurement. This International Standard specifies a framework for brand valuation, including objectives, bases of valuation, approaches to valuation, methods of valuation and sourcing of quality data and assumptio
20、ns. It also specifies methods for reporting the results of such valuation. 2 Terms and definitions For the purposes of this document, the following terms and definitions apply. 2.1 asset legal right or organizational resource which is controllable by an entity and has the capacity to generate econom
21、ic benefits 2.2 brand marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating distinctive images and associations in the minds o
22、f stakeholders, thereby generating economic benefits/values 2.3 intangible asset identifiable non-financial asset with no physical substance 2.4 monetary brand value brand value economic value of the brand in transferable monetary units NOTE The result obtained can be either a single economic value
23、or a range of values. 2.5 premise of value assumption regarding the most likely set of circumstances that can be applicable to the subject valuation 2.6 present value current discounted worth of a future monetary amount 2.7 stakeholder person whose decision making is, or might be, affected by a bran
24、d NOTE Common stakeholders are customers, consumers, suppliers, employees, potential employees, opinion leaders, shareholders, investors, governmental authorities and non-governmental organizations. BS ISO 10668:2010ISO 10668:2010(E) 2 ISO 2010 All rights reserved2.8 trade mark legally protectable s
25、ign, or any combination of signs, capable of distinguishing the goods or services of one undertaking from those of other undertakings EXAMPLE Words (including personal names), letters, numerals, figurative elements and combinations of colours. NOTE 1 This definition is in accordance with the trade m
26、ark definition of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). NOTE 2 A trade name is the name of a business, association or other organization used to identify it. It might or might not be the same as the trade mark used to identify the companys goods and/or s
27、ervices. 2.9 valuation date date on which the valuation is concluded 2.10 value date date on which the valuation inputs, assumptions and valuation result are valid 3 General requirements 3.1 Transparency Monetary brand valuation processes shall be transparent. This requirement includes disclosure an
28、d quantification of valuation inputs, assumptions and risks as well as, when appropriate, sensitivity analyses of the brand value to the main parameters used in the valuation models. 3.2 Validity A valuation shall be based on valid and relevant inputs and assumptions as of the value date. 3.3 Reliab
29、ility If a valuation is repeated, it shall reliably give a comparable and reconcilable result. 3.4 Sufficiency Brand valuations shall be based on sufficient data and analysis to form a reliable conclusion. 3.5 Objectivity The appraiser shall conduct the valuation free from any form of biased judgeme
30、nt. 3.6 Financial, behavioural and legal parameters When performing a monetary brand valuation, financial, behavioural and legal parameters shall be taken into account, the aforementioned parameters forming part of the overall assessment. The monetary brand valuation shall be conducted on the basis
31、of the findings from the financial, behavioural and legal modules. BS ISO 10668:2010ISO 10668:2010(E) ISO 2010 All rights reserved 34 Specific requirements 4.1 Declaration of purpose The declaration of purpose shall specify the intended use, the addressed audiences, the identified asset, the premise
32、 of value, the position of the appraiser (valuator), the valuation date and the value date. The value concept shall be specified in accordance with the purpose of valuation. NOTE The purposes of valuation are diverse. Common purposes are: a) management information; b) strategic planning; c) value re
33、porting; d) accounting; e) liquidation; f) legal transaction; g) licensing; h) litigation support; i) dispute resolution; j) taxation planning and compliance; k) loan and equity financing. 4.2 Value concept The monetary value of a brand shall represent the economic benefit conferred by a brand over
34、its expected useful economic life. Generally, the monetary value shall be calculated by reference to cash flows, determined by reference to earnings, economic profits or cost savings. 4.3 Identification of brand The appraisal shall identify, define and describe the brand subject to valuation. 5 Valu
35、ation approaches and methods 5.1 General considerations Brands shall be valued by applying the income, market or cost approach. The purpose of the valuation, the value concept and the characteristics of the brand being valued shall dictate which approach (or approaches) is (are) utilized to calculat
36、e the value of a brand. BS ISO 10668:2010ISO 10668:2010(E) 4 ISO 2010 All rights reserved5.2 Income approach 5.2.1 Description of the income approach The income approach measures the value of the brand by reference to the present value of the economic benefits expected to be received over the remain
37、ing useful economic life of the brand. The steps followed in applying the income approach shall include estimating the expected after-tax cash flow streams attributable to the asset over its remaining useful economic life, and converting these after-tax cash flow streams to present value through dis
38、counting with an appropriate discount rate. 5.2.2 Determination of cash flows 5.2.2.1 General The cash flows (or an alternative measure of brand earnings) used in a brand valuation shall be those cash flows reasonably attributable to the brand. Various methods are available to determine the cash flo
39、ws, as outlined in 5.2.2.2 to 5.2.2.7. 5.2.2.2 Price premium method The price premium method shall estimate the value of a brand by reference to the price premium that it generates. The price charged for goods or services marketed with a certain brand shall preferably be compared with the price char
40、ged for a generic product, i.e. an unbranded product. In order to arrive at the additional cash flow attributable to a brand, the appraisal shall identify and eliminate non-brand factors that make it possible for the owner of the brand to charge a higher price for the goods or services in question.
41、Additional and extra costs incurred in order to be able to charge a premium price shall be deducted from any price premium charged. In many industries, identifying an unbranded or generic product for comparison with a branded product can be difficult, and price premium shall then be assessed through
42、 reference to the brand with the lowest brand strength (see 6.2.4) in the market. The price premium method shall be used taking into account the volume premium method. In addition, it shall take into account cost-saving benefits. 5.2.2.3 Volume premium method The volume premium method shall estimate
43、 the value of a brand by reference to the volume premium that it generates. In order to determine the cash flow generated by the brand, the volume premium method can be applied. In this method, additional cash flows generated through a volume premium shall be determined based on an analysis of marke
44、t shares. The additional cash flow generated by the brand is the operating cash profit related to the excess market share. The appraisal shall pay attention to the fact that there may be other factors explaining a specific market share. Market imperfection is one such very important factor. When val
45、uing a brand with a significant market position, the appraisal shall identify the effect of any market imperfection on the generated cash flow and exclude this from the cash flow attributed to the brand. BS ISO 10668:2010ISO 10668:2010(E) ISO 2010 All rights reserved 5As with the premium price, cons
46、ideration shall be given to additional costs incurred in order to hold a larger market share or faster growth in market share. The volume premium method shall be used taking into account the price premium method. In addition, it shall take into account cost-saving benefits. 5.2.2.4 Income-split meth
47、od The income-split method shall value the brand as the present value of the portion of the economic profit attributable to the brand. The economic profit corresponds to the net operating profit after a charge for capital employed in the business, expressed at market value. The results of behavioura
48、l research shall then be used to identify the contribution of the brand to increasing earnings or reducing costs. The value of the brand shall then correspond to the present value of the portion of the economic profit over the brands remaining useful economic life. 5.2.2.5 Multi-period excess earnin
49、gs method The multi-period excess earnings method shall value the brand as the present value of the future residual cash flow after deducting returns for all other assets required to operate the business. When there are several intangible assets generating cash flow in the business, this method requires a valuation of each individual group of intangible assets in order to be able to calculate the cost of capital related to each of them. 5.2.2.6 Incremental cash flow method The incremental cash flow method shall identify the cash flow
