The importance of recognizing brands as intangible assets according to the IFRS for SMEs

Abstract

This study aims to highlight the importance of recognizing and measuring intangible assets, as these form part of the market value of organizations in general. To describe the procedure for creating and recognizing a brand within an entity, all executed designs must be recorded in the intangible assets account, as they contribute to the generation of economic value. This provides efficient tools for measuring and valuing these resources. A qualitative approach was used for this study, employing interviews with specialists in IFRS for SMEs and a review of Section 18, Intangible Assets other than Goodwill, of the same standard. The analysis of Section 18 establishes that intangible assets must be identifiable and non-monetary. This implies that not all brands in an SME qualify as intangible assets; only those that meet the criterion of generating future economic benefits, such as obtaining a franchise where the brand can be sold, licensed, or commercially exploited, will be considered intangible assets.