PRESS RELEASE
24 July 2009
Most people can recognize a strong brand when they see one – it’s authentic, different and relevant. But how do you put a price on such an intangible asset? An international standard in the making will enable organizations to do just that, providing a consistent, reliable approach to brand valuation. BSI is now calling for comments on the draft standard from all interested parties.
Developed by ISO (the International Organization for Standardization) with input from BSI in the UK, ISO/DIS 10668 specifies the requirements for procedures and methods of monetary brand value measurement. Aimed at both brand consultants, and finance and marketing professionals, publication of the final standard is expected in summer 2010.
General requirements of the standard include transparency of the process, which will allow organizations to better understand the methods used in valuing their assets and increase confidence in the services offered by brand consultants.
The draft standard specifies the requirements for three approaches to brand valuation:
• The Income Approach which measures the value of the brand by reference to the present value of its economic benefits
• The Market Approach which measures the value of the brand based on what other purchasers in the market have paid for similar assets
• The Cost Approach which measures the value of the brand based on the cost invested in it.
Valuation inputs include assessments of market data, brand strength (usually based on factors such as awareness and loyalty), brand relevance in its specific market and legal aspects, such as rights.
David Haigh, CEO of valuation consultancy, Brand Finance, said:
“Brands are the largest single source of intangible assets yet, historically, brand valuation has been viewed as opaque, subjective and unreliable – a bit of a black art. The ISO standard recognizes this and attempts to create a consensus on how brands should be valued.
The draft standard represents global best practice in brand valuation and marks a huge step forward in a vital area of management concern. I urge all interested parties to review and comment on the draft.”
To comment on the draft standard visit: www.bsigroup.com/draft10668 before 30th September. All comments will be fed back to the UK committee, which is made up of industry experts, for their consideration.
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Notes to Editors
For media information:
Lucy Fulton
Public Relations Officer, BSI
Tel: +44 (0)20 8996 7248
Mob: +44 (0)7717 451990
Email: lucy.fulton@bsigroup.com
Website: www.bsigroup.com
David Haigh is CEO of Brand Finance plc, a Fellow of the Institute of Chartered Accountants, the Chartered Institute of Marketing and the Marketing Society, which he represented on the ISO working party.
About BSI
BSI is a global independent business services organization that inspires confidence and delivers assurance to over 80,000 customers with standards-based solutions. Originating as the world’s first national standards body, BSI has over 2,400 staff operating in over 120 countries through more than 50 global offices. BSI’s key offerings are:
• The development and sale of private, national and international standards and supporting information that promote and share best practice
• Second and third-party management systems assessment and certification in all critical areas of management disciplines
• Testing and certification of services and products for Kitemark and CE marking to UK, European and International standards. BSI is a Notified Body for 17 New Approach EU Directives
• Certification of high-risk, complex medical devices
• Performance management software solutions
