Valuation of Intangible Assets -

While intangible assets play an increasingly important role in today’s business world, it remains difficult to quantify its economic and monetary value. The “fair” value of an intangible asset is the amount that such asset can be bought, sold, or settled in a transaction between willing parties, not involving forced or liquidation sale. The method most often used in the valuation of intangible property determines the present value of the cash flows derived from using such property. The research problem is based on an attempt to investigate if there is an acceptable procedure to value and report intangible assets. Comprising the above problem, are the subquestions which we focused our resources on: (1) What are ABB’s methods of and valuation of the intangible assets – particularly goodwill and patent? (2) What are their reasons for the choice of these methods used in their valuation? In this study we have attempted to research the various methods in valuaing Goodwill and Patent rights in ABB group . From our findings and analysis we realised that ABB at the group level values basically all intangible assets according to the FASB 141 &142 reguirements- Goodwill and Patent inclusive. We realised that ABB at the group level values basically all intangible assets according to the FASB 141&142 requirements - Goodwill and patent inclusiv