Research On The Calculation Of The Discount Rate In The Intangible Assets Valuation

Valuation of intangible assets is not only the needs of science and technology system reform and the market economic development, but also is an important part to promote the transformation of scientific and technological achievements and improve intellectual property protection system. At this stage, the main methods of intangible assets valuation have the market approach, cost approach, and the income approach. Among them, rationally determine the discount rate in the income approach in the intangible assets valuation can be an important prerequisite for the appropriate use of it, but also one of the difficulties and obstacles. Small differences in the discount rate might bring tens of thousands or even hundreds of millions of differences to the assessment. Therefore, we should attach importance to the choice of discount rate and the use of method of intangible assets, to further enhance the quality of intangible assets valuation.This paper is based on the discount rate selection problem in the income approach of the intangible assets valuation, it is divided into seven chapters. The first chapter is the introduction, introduced this paper’s main research questions, and has carried on the summary to the domestic and foreign research history, the situation and the trend of development in present; The second chapter is for the related theories of the intangible assets valuation. First of all, it introduced the intangible asset’s basic concept and the characteristic, secondly, it introduced the intangible asset valuation’s meaning and significance, as well the assumptions and the theoretical basis of intangible assets valuation, etc. Thirdly, the paper described the three main methods of intangible assets valuation, market approach, cost approach and income approach, which leads to the next chapter, the discussion on the discount rate. The third chapter defined the discount rate in intangible assets valuation, in this chapter, we discuss from the basic concepts and determine principles of the discount rate, to explore several factors that to be considered when we determine the discount rate. The fourth chapter is the calculation of discount rate in intangible assets, this chapter divided the methods of the discount rate calculation into two categories to summarized, discussed the methods of selecting specific economic parameters in details, and made a number of insights for the choice of discount rate at this stage. The fifth chapter for the dissimilar condition under the discount rate selection question, affects the intangible asset appraisal the factor to be many, these factors also set the request to the discount rate selection method. The sixth chapter gives an example of the assessment process of patented technology, discuss how the intangible assets valuation practice, and how to choose the discount rate and other economic parameters. The seventh chapter is conclusions and perspective. Among them, the third chapter and the fourth chapter are the core chapters of this paper. This paper aims at provide a theoretical basis for China’s intangible assets valuation, and the selection of the discount rate in particular, it has a guiding significance to the practical.