Study On The Accounting Of Brand Value

Along with the trend of economic globalization is more obvious, the competition of market has already turned from the competition of product, the competition of price into the competition of brand. The brand is an important intangible asset in the business enterprise; the peoples' understanding of it is also continuously thorough along with development of the economy. The business enterprise can obtain the victory in the increasingly vigorous competition of market; the key is that it can own the brand. But for the business enterprise, which owns the brand, how to reflect the value of brand in the account books, that is the main contents of this thesis. Based on the definition of brand value, this thesis mainly discussed the following four aspects: the recognition of brand value; the measurement of brand value; the accounting of brand value and the disclosure of brand value in the financial statements. Because the brand value accords with the recognition standards of the intangible asset; it should be recognized as the intangible asset. We can follow the historical cost principle when the brand value being valued originally, but we can adopt the other attributes when it being valued later. Otherwise, while the brand value being valued, we should choose the different attribute according to the different purpose of valuation. Thereby the brand value can be valued accurately. The accounting of brand value includes the rearrangement of the related accounts and the accounting: the acquisition of brand; the transferring and writing off of brand; the investment of brand; the amortization of brand; the follow-up expenditure of brand and the brand value at the end. As the part of the intangible assets, brand value should be reported in the financial statements. It can be listed under the general ledger "intangible assets"as the subsidiary ledger "brand". In addition, we also should report the information about brand in the financial statements and the notes to the accounts. such as: the time of assessment, the organization of assessment, the method of assessment; the original book value of the brands and the closing balance, the adjustment of brand value; the brand value because of the combination of corporation; the brand value of conveyance and investment, etc.