Intangibles

How do I value my brand or IP for the balance sheet?

Under Australian accounting standards, an internally built brand generally can’t just be written onto your balance sheet — the rules deliberately restrict recognising internally generated brands and goodwill. Acquired intangibles are different, and are recognised at cost. So “putting my brand on the balance sheet” is often really a valuation for a deal, a raise or a licence, not a bookkeeping entry.

What it depends on

  • Whether the intangible was acquired or internally generated.
  • The purpose — statutory accounts versus a transaction or licence.
  • The valuation method appropriate to the asset and purpose.

Where judgement stays human: Whether an intangible can be recognised, and how to value it defensibly for the purpose at hand, is a technical judgement under the standards — not a number you can assume onto the books.

How this is actually worked

AASB 138 draws a hard line between intangibles you buy and ones you build. Buy a brand and it’s recognised at what you paid; build it yourself and most of the spend is expensed as you go, because the standard doesn’t let you capitalise an internally generated brand. That surprises a lot of founders who “know” their brand is worth a fortune.

That doesn’t make the value unreal — it just lives outside the statutory accounts until a transaction crystallises it. For a sale, capital raise, licensing deal or tax structuring, a defensible valuation is exactly the right tool; for the balance sheet, the standard usually says no.

What the answer depends on

  • Whether the intangible was acquired or internally generated.
  • The purpose — statutory accounts versus a transaction or licence.
  • The valuation method appropriate to the asset and purpose.

Where the judgement stays human

Whether an intangible can be recognised, and how to value it defensibly for the purpose at hand, is a technical judgement under the standards — not a number you can assume onto the books.

Brand & IP · general information current as at 1 September 2026. This is general information only, not personal financial, tax or legal advice.