This is to consider all of these factors right upfront and in an ongoing way so if we will move on and think about the external analysis and valuation perspective on the implications of not having a framework for accountingcomprehensively by IP.
The first point to make is that the accounting regulators have deliberately for a very long time-had an intentionally conservative approach to external financial reporting so we are doing the intangibles I appear context is that the accounting regulators want an external active market and prices in that those external active markets before an intangible asset will be recognized and.
Answered: Your Most Burning Questions About valuation
That appears to be the principal at the core of the accounts treatment of IP under SS be but thinking on the news is not all that in fact of eternal financial reporting is surprisingly still very useful despite the practical irrelevance of double-a SB so there there is hope so for example the conservative external reporting of Be ne tech bio pharma shows us very clearly where Be ne tech is.
That it’s a developing company property valuer qualifications spending a very large amount of its cash that it’s raising and generating some cash through revenues on research and development so we can see it’s still in that product development stage so we can look at the notes to the accounts for Be ne tech and we can see.
There’s a little bit more information here project expenses other IT expenses we can see the government clones and so forth if we do a little just basic analysis here we can look at the amount of R&D and related innovation invention type expenses relative to total expenses and see certain in and that these expenses were a very high proportion of the total expenses so we get a sense of what the company is doing.