ëDark Matterí to be valued by RICS guidelines

The accurate valuation of intangible assets such as reputation and databases is becoming increasingly important in calculating the true value of a business says RICS (Royal Institution of Chartered Surveyors). Publishing new guidance this week for its members RICS believes the real value of companies will now be revealed.

When it comes to valuing intangible assets, such as people, goodwill, branding, customer loyalty and intellectual property, Britain lags behind the US and the emerging economies of the far east and Asia. The future formalisation of guidelines in the RICS valuation bible ëThe Red Bookí, will considerably modify the processes by which commercial assets are valued by a property industry traditionally more familiar with valuing bricks and mortar.

RICS Spokesman Ronan Stack said:

ìThe bundling of tangible and intangible assets under one banner is no longer an option. Although many valuers may consider the ëdark matterí of intangibles to be outside the scope of their work, the profession must at least be able to properly differentiate between all such assets. Until now, putting value to what can not be seen or touched has been like trying to grasp soap in a bath.

ìUnderstanding the valuation of intangibles will most certainly help the property industry appreciate and work more closely across the whole business environment, preparing property professionals to meet new challenges and markets for their services.î

RICS spokesperson David Fawcett added:

ìCompanies in the UK are becoming increasingly intangible asset rich and tangible asset poor as we move towards the so called ìknowledge economy. Intangible assets are often not recognised in company balance sheets and their inclusion will mean that performance indicators show a much more accurate position.î