Brand Protection

Do you have a brand protection strategy? Or do you sit back and wait for brand pirates to strike first? The latter approach will become even more foolhardy from 23 December 1998.

From that date, the Institute of Chartered Accountants' Financial Reporting Standard 10 'Goodwill and Intangible Assets' ('FRS10') will require that the values of intangible assets (such as brands and intellectual property) and acquired goodwill be recognised in financial statements. Henceforth, brand mis-management will have a highly visible effect on a company's value.

Though arguably overdue, FSR10 must be welcomed as a serious recognition that brands and other intangible assets can often be more effective determinants of business success than the tangible assets traditionally associated with business activity.