Open AccessValuation model of intangible assets based on costs approach
Author(s) -
Ji-Myung Jung,
신선윤,
Young-Dae Lee,
Seulki Jeong
Publication year - 2017
Publication title -
cheyuk gwahag yeon-gu/cheyug gwahag yeon'gu
Language(s) - English
Resource type - Journals
eISSN - 2233-7938
pISSN - 1598-2920
DOI - 10.24985/kjss.2017.28.4.881
Subject(s) - valuation (finance) , intangible asset , book value , explanatory power , actuarial science , business , inventory valuation , economics , accounting , epistemology , philosophy , earnings
Purpose In the field of sports industry, the intangible assets of sporting companies often show discrepancies between accounting information and corporate value because of conservative current accounting standards. Therefore, this study intends to present a valuation model of intangible assets of sports industry based on cost approach, as a part of a method of capitalizing intangible property expenditures. And we tried to verify the valuation model of intangible assets derived from the research on actual sports companies. Methods To accomplish the purpose of the study, reviewing the literature on various related precedent studies and examining related valuation methodology, legal basis, and representative valuation models were utilized. And to verify the effectiveness of the derived model, Tobin q values were derived and compared. A simple regression analysis was used to verify the explanatory power of the derived model Results The financial evaluation was conducted based on the cost approach, which enables relatively objective evaluation through the existing financial statements, and a valuation model with the procedure of duplicating the AHP evaluation to reflect the characteristics of the individual intangible assets was presented. In addition, in order to verify the proposed valuation model, the valuation was conducted by putting the accounting information of the sports companies into the intangible asset valuation model presented in this study. As a result of the statistical analysis on the evaluation results, the intangible asset value evaluation model presented in this study is proved to be significant based on statistically high explanatory power Conclusion Therefore, if it is possible to appropriately evaluate the enterprise value of sports companies through the intangible asset valuation model based on the cost approach presented in this study, various types of technology financing will be possible in the sports industry. And this is expected to accelerate the growth of the sports industry in the future.