The Report of the Committee on Brand Valuation
The Report of the Committee on Brand Valuation
The Ministry of Economy, Trade and Industry The Government of Japan June 24, 2002
Contents of the Report
Members of the Committee on Brand Valuation Summary The Report of the Committee on Brand Valuation I II Publication of the Report Definition of Brand II-1 II-2 II-3 III Concept of Brand Concept of Brand Value Corporate Brand and Product Brand 5 7 21 22 25 25 25 26 29 29 29 29 31 33 34 34 35 36 36 38 39 40 41 41 43 43 49 58 58
Brand Royalty Fee: Current Practice and Issues
III-1 Current Practice in Charging Brand Royalty Fee III-2 Issues on the Payment and Receipt of Brand Royalty Fee III-2-1 Issues related to the Commercial Code III-2-2 Issues related to the Corporation Tax Laws III-3 Issues on the Calculation of Brand Royalty Fee IV Capitalization of Brands: Implications and Issues IV-1 Capitalization of Purchased Brands IV-2 Capitalization of Internally Generated Brands IV-3 Issues on the Capitalization of Internally Generated Brands IV-3-1 IV-3-2 IV-3-3 Issues related to Business Accounting regarding Capitalization of Internally Generated Brands Issues related to the Commercial Code regarding Capitalization of Internally Generated Brands Issues related to the Corporation Tax Laws regarding Capitalization of Internally Generated Brands IV-4 Treatment of Institutional Issues V Results and Analysis of the Questionnaire on Brand Valuation V-1 V-2 Outline of the Questionnaire Results and Analysis Results of the Awareness and Recognition Results of the Current Practices
V-2-1 V-2-2 VI
Brand Valuation Model
VI-1 Approaches to Brand Valuation
VI-1-1
Residual Approach (1) Cost Approach (2) Market Approach (3) Income Approach ‡ @ ‡ A Royalty Exemption Method Price Premium Method
58 58 58 59 59 60 60 60 61 63 64 65 66 67 67 72 74 78 78 80 80 81 82 83 84 84 85 86 91 93 93 97
VI-1-2 Independent Valuation Approach
VI-1-3 Examination of Valuation Methodology under Income Approach (1)
The Ministry of Economy, Trade and Industry The Government of Japan June 24, 2002
Contents of the Report
Members of the Committee on Brand Valuation Summary The Report of the Committee on Brand Valuation I II Publication of the Report Definition of Brand II-1 II-2 II-3 III Concept of Brand Concept of Brand Value Corporate Brand and Product Brand 5 7 21 22 25 25 25 26 29 29 29 29 31 33 34 34 35 36 36 38 39 40 41 41 43 43 49 58 58
Brand Royalty Fee: Current Practice and Issues
III-1 Current Practice in Charging Brand Royalty Fee III-2 Issues on the Payment and Receipt of Brand Royalty Fee III-2-1 Issues related to the Commercial Code III-2-2 Issues related to the Corporation Tax Laws III-3 Issues on the Calculation of Brand Royalty Fee IV Capitalization of Brands: Implications and Issues IV-1 Capitalization of Purchased Brands IV-2 Capitalization of Internally Generated Brands IV-3 Issues on the Capitalization of Internally Generated Brands IV-3-1 IV-3-2 IV-3-3 Issues related to Business Accounting regarding Capitalization of Internally Generated Brands Issues related to the Commercial Code regarding Capitalization of Internally Generated Brands Issues related to the Corporation Tax Laws regarding Capitalization of Internally Generated Brands IV-4 Treatment of Institutional Issues V Results and Analysis of the Questionnaire on Brand Valuation V-1 V-2 Outline of the Questionnaire Results and Analysis Results of the Awareness and Recognition Results of the Current Practices
V-2-1 V-2-2 VI
Brand Valuation Model
VI-1 Approaches to Brand Valuation
VI-1-1
Residual Approach (1) Cost Approach (2) Market Approach (3) Income Approach ‡ @ ‡ A Royalty Exemption Method Price Premium Method
58 58 58 59 59 60 60 60 61 63 64 65 66 67 67 72 74 78 78 80 80 81 82 83 84 84 85 86 91 93 93 97
VI-1-2 Independent Valuation Approach
VI-1-3 Examination of Valuation Methodology under Income Approach (1)