ISO adds legal and marketing perspective to accounting requirements

The International Standards Organisation has launched its standard on brand valuation, which is the result of two years of collaboration between brand valuation specialists all over the world.

Previous standards covered brand valuation from largely an accounting perspective, while ISO 10668: Requirements for monetary brand valuation, highlights the importance of input from legal and marketing professionals, with a particular emphasis on a brand’s behavioural aspects, such as brand strength, awareness, loyalty and stakeholder perception.

The standard, which is 10 pages long, will be adopted in the UK from 7 October and the other countries involved thereafter.

Stuart Whitwell, joint managing director at brand valuation specialists Intangible Business, joined the panel advising on the new standard panel as the representative of CIMA (Chartered Institute of Management Accountants).

Whitwell said: ‘The ISO standard provides a more rounded and complete framework outlining how brands should be valued. This will ensure brands are valued more consistently and accurately resulting in more robust valuations. Given that companies are more conscious than ever before of leveraging brand value, it is imperative that we have a recognised, standardised valuation methodology such as this.’