The Intellectual Property Office of Singapore (IPOS) and the Accounting and Corporate Regulatory Authority (ACRA) have unveiled the Intangibles Disclosure Framework (IDF), a new framework to disclose and communicate the value of intangible assets (IA), as part of the Singapore IP Strategy 2030.
The disclosure framework was unveiled alongside new resources to help enterprises manage and commercialise their intellectual property (IP).
In more detail
Intangibles Disclosure Framework
More than 90% of value from the S&P 500 is made up of IAs, demonstrating the key role of IAs in an enterprise’s business.
The IDF therefore aims to provide guidance for enterprises to disclose and communicate their IA, such as brand value, patents or registered designs, in a systematic and comprehensive way. Standardised IA disclosures would assist stakeholders in making more informed assessments of an enterprise’s business and financial prospects, resulting in wiser investment decisions and improved risk management.
The framework consists of the following four pillars, which provide guidance on the disclosure methods for an enterprise’s IAs:
- Strategy: Disclosure and communication of how intangibles contribute to an enterprise’s corporate strategy, value creation and financial planning, where such information is material
- Identification: Disclosure of the nature and characteristics of the intangibles that fit into the definition provided, and categorisation of these intangibles into six categories (i.e., Marketing-related, Customer-related, Artistic-related, Contract-related, Technology-related and Human Capital-related) to facilitate the comparability of intangibles
- Measurement: Disclosure of the quantitative or valuation-relevant metrics and drivers used to assess the performance and financial health of an enterprise’s intangibles, where such information is material
- Management: Disclosure of the processes for identifying, assessing and managing risks and opportunities in relation to an enterprise’s intangibles
New IP resources to support enterprises
Enterprises can also utilisee new resources as listed below, which will allow them to better understand their IP portfolios and manage their IP:
- GoBusiness IP Grow platform, which provides resources for enterprises to connect with IA/IP service providers and access e-Advisor tools for live, customized recommendations
- IP Ready programme, which assists enterprises with building internal capabilities to manage IP by pairing enterprises with an IP strategist to develop an IA strategy and institutionalise IP management processes
- Signing of a Memorandum of Understanding with the Singapore Business Federation, which offers Singapore-based businesses access to GlobalConnect@SBF’s internationalisation services, market advisors and global contacts.
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