Indas Intangible asset valuation

Hey Yasaswi! Your table is a nice start for classifying intangible asset valuation under Ind AS.

To clarify, Ind AS 38 - Intangible Assets provides guidance on recognition and measurement but does not prescribe a fixed valuation method like Income, Market, or Cost approach for specific types of intangibles. Instead, the valuation depends on the nature of the asset and available evidence.

Here’s a quick breakdown on valuation approaches generally accepted under Ind AS 38:

Key points:

• Income approach is widely used for valuation of intangible assets expected to generate economic benefits (e.g., brand names, customer relations, patents).

• Market approach is used when there are active markets or comparable transactions.

• Cost approach is often used for internally developed assets or when cost reflects fair value better (e.g., development costs).

So, your table is a good summary of typical approaches, but:

• Ind AS doesn’t mandate fixed valuation methods per asset type.

• The choice depends on the facts, circumstances, and professional judgment.

• Disclosures about valuation method used are essential.