On 3 June the Chris Thorne, chairman of the International Valuation Standards Board, called for ‘more extensive guidance’ to ensure rules for valuing intangible assets are applied consistently (Goodwill Hunting, 3 June). Intangible Business, as specialists in the valuation of intangible assets, believes it is not just a question of interpretation - the rules themselves need updating for parity with other asset classes.

Two anomalies spring to mind: firstly, under the current rules intangible asset values must be revised down (should they decrease in value) but not revised up. Secondly, only acquired intangible assets are recognised on a balance sheet, not internally generated assets.

Therefore, most intangible asset values on balance sheets are often hard to understand, irrelevant, out of date and unreflective of true IP value. This will remain the case until the rules change.