• For businesses that have made corporate acquisitions during the 2013 financial year, there is a requirement to allocate the purchase price to identifiable assets, which includes intellectual property. The allocation of value between intangible assets can influence income tax and accounting profits due to differences in economic lives and tax amortisation rates. A purchase price allocation assessment pre-finalising accounts can optimise the tax treatment associated with corporate acquisitions.
  • Where the capitalised value of an intangible varies from its fair value, an impairment valuation needs to be carried out, in order to assess how much value should be written off. Impairment reviews are also necessary for intangible assets with indefinite useful lives – such as brands and goodwill - irrespective of whether there is any indication of impairment.