All Brands are not created equal. Best Global Brands 2007

Interbrand is extremely joyful to once more post our annual rating of the easiest international manufacturers through model price, in co-operation with BusinessWeek magazine.We're proud that over the process the previous decade our greatest worldwide manufacturers research has turn into the barometer of winning model administration. The environments within which manufacturers function, and the demanding situations and possibilities they face, have replaced dramatically in this time; in spite of the fact that, we think the only consistent has been the suggestion model has the power to create major fiscal price for the enterprise it serves, and that we will be able to degree the created worth.

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It fits with current corporate finance theory and practice. There are three key elements and they are detailed below: The valuations of brands appearing in the Best Global Brands (BGB) are calculated in their current use to their current owner. They, therefore, do not necessarily represent the potential purchase, extension or licensing value of the brands. Why value brands? The purpose of these valuations is to demonstrate to the business community that brands are very important business assets and in many cases the single most valuable company asset.

Brand awareness and brand equity are a means to an end. Brand awareness is simply knowledge that a brand exists, thus brand awareness may prompt customers to consider buying a product. Brand equity is a measure of customer perceptions of a brand; thus it may give a customer reason to prefer a product over the alternatives. Brand share is simply the market share achieved by the brand. Thus brand awareness, equity and share are all measures of what a customer thinks or does, it is not an assessment of the economic value created by those thought or actions.

However, they are subject to an annual impairment test and their carrying value needs to be reduced if the value declined. The technique is consistent with the way in which Interbrand has assessed brands for balance sheet inclusion – though of course using more extensive and proprietary data. We support the stance of the different accounting standards which recognize the value of brands on the balance sheet. Interbrand has been leading the debate on this issue for many years. However, current accounting standards allow only for the recognition of acquired brands, not internally developed brands.

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