What is the most common valuation method used for intangible assets?
A)Market-based
B)Income-based
C)Cost-based
D)Amortized cost

Question

Quizplus · Accepted Answer

Income-based valuation methods, such as the relief-from-royalty or multi-period excess earnings method, are the most common for intangible assets since they reflect the expected future cash flows generated by the asset. Market-based methods, such as guideline public company or transaction analyses, may be difficult to apply for intangible assets since there may be limited comparable transactions. Cost-based methods, such as the replacement cost method or the reproduction cost method, may not reflect the true economic value of the asset. Amortized cost is a method of accounting for intangible assets, not a valuation method.

What Is the Most Common Valuation Method Used for Intangible