The problems of determining the fair value of intellectual property in the structure of assets of financial institutions

Larisa Chirkova,Polina Chirkova,Oleg Shkolik

doi:10.1088/1742-6596/1141/1/012013

Abstract

A strong and stable financial sector is the main element of investment inflow and increase of liquidity in the economic system of the state, striving for a developed economy. The practice of several previous years has shown the presence of certain factors of instability in the Russian financial sector. The most important factor of the instability of the national financial sector is the problem of ensuring the financial obligations of financial institutions, which at best forces credit institutions and investment institutions to introduce external management from the Central Bank, and in the worst case leads to bankruptcy.Traditionally, the main direction in assessing the quality of assets of financial institutions is to determine the market (fair) value of tangible assets, namely financial assets and real estate. However, recent events that have occurred with large Russian credit institutions have revealed shortcomings in this approach. First of all, since the objects of intellectual property and other intangible assets are either undervalued or overvalued. Proceeding from these facts, the team of researchers developed and presented a mathematical model that allows an alternative valuation of intangible intellectual assets in the ownership structure of financial institutions. The model was used to analyze the activities of individual financial organisations operating within the national economic system.[1]

Highlights

We note that only public company data is the basis, because the starting point is their market capitalization, which is quite convenient, accessible and acceptable for many sources of analytical data
Value, unlike intangible assets, can not be accepted for balance, can not participate in direct economic turnover, but, on the other hand, it exerts a global influence on the capitalization of individual companies and often acts as the main driving force for the owners of individual companies are at the top of various ratings of billionaires, and each asset is a value, but not every asset can be an asset
Since this period corresponded to a sharp collapse in the quotations of shares of public companies, their capitalization declined, which directly affected the reduction of intangible value, since it is precisely calculated as the difference between the market capitalization and the book value of the company

Summary

Introduction

We note that only public company data is the basis, because the starting point is their market capitalization, which is quite convenient, accessible and acceptable for many sources of analytical data. The scientific development of issues related to intellectual property and intangible assets in general, as well as the development of scientific problems to determine their fair value, are very important and relevant in the field of financial institutions in the financial markets.

Results

Conclusion