Legal Issues On Intangible Assets Assessment Of The Target Enterprises In Foreign Acquisition

With the development of knowledge economy, intangible assets become a major property in companies. Foreign investors have recognized the importance of intangible assets, so they use various means to embezzle large number of Chinese elite of intangible assets, and caused tremendous economic losses.This article focuses on the legal issues concerning about massive loss of intangible assets in foreign acquisition in recent years. The loss of the intangible assets in foreign investment mainly in the following several ways, including foreigner corporate objectives possession of intangible assets without assessment procedures; foreign acquisition target enterprises through lower prices of target enterprises' intangible assets; foreigner with evaluation of relevant government departments together fraud target enterprises' intangible assets, and so on.This was followed by the main paper on the evaluation of intangible assets was discussed, summed up China's current institutions and personnel status quo in assessment of intangible assets and make the corresponding countermeasures, is establishing a unified standards in the intangible asset evaluation industry, and maintaining the independence evaluation of intangible assets industries , clearing the intangible assets evaluation agencies and the division of the legal rights and obligations.In light of the understanding in intangible assets and the unscientific assessment of intangible assets, the third part of the article discussed the scope of the target enterprises' intangible assets, assessment methods and assessment procedures. China's current methods of intangible assets that the methods of the present value of earnings, the replacement cost method, the current market price, but has its flaws, it is proposed legislation to expand scope of the assessment of intangible assets, unified regulations rigorous assessment methods and assessment procedures .The most important elements of the article is funding target acquisition in the loss of intangible assets of enterprises, one of the most important innovation is given the power of declared invalid to the relevant government departments in accordance with the law on intangible assets; Because the legal system of the foreign acquisitions in target enterprises' intangible assets has the various loopholes, the paper proposed to make "Law of evaluating the intangible assets";The Other important way is improving the regulatory functions to the relevant government departments in intangible assets acquisition; Constructing the liability system of foreign investment target the enterprises' intangible assets.