On 4 february 2020, the singapore intellectual property authority (ipos) and the singapore stock exchange (ssgx) worked together to introduce the intangible assets public assessment and audit scheme (ideas) for companies listed in ssgx and those intending to do so, with a view to raising corporate awareness, encouraging enterprises to assess intangible assets and creating a more stable environment for intangible asset disclosure. The scheme will help investors to better understand the value of intangible assets and help businesses gain more financial support。
In a knowledge-driven economic environment, intangible assets become increasingly important in the growth and success of enterprises. Empirical evidence suggests that leading global technology firms are increasing their investment in intangible assets to maintain their competitiveness. Nevertheless, important intangible asset information is usually omitted from financial and stakeholder reports, which are common to traditional auditing methods of productive economic enterprises。
Ideas plans to provide government support to enterprises in conducting intangible asset assessments and audits. The plan will help enterprises identify their own information on significant intangible assets, which is an important driving force in their operations. In addition, the plan will make recommendations on the dissemination of such important information to the market. As traditional performance indicators based on the value of tangible assets shift to an age-of-knowledge economy audit approach, increased transparency and clarity of internal audit information will help enterprises build investor confidence and increase the effectiveness of the capital market in singapore to help businesses with rich intangible assets raise funds。
“technology, branding, ideas, data, knowledge and other forms of innovation in intangible assets are the main forces in creating the world's most innovative and valuable enterprises. However, insufficient market knowledge of intangible assets (including intellectual property rights) remains a major challenge for investors and enterprises. Ideas will help investors to make more informed investment decisions, while helping enterprises with intangible assets to demonstrate their true business value. Ipos is pleased to work with sgx to work together in singapore's next frontier area for the nurturing and development of innovative enterprises.”
The executive vice president for global operations, chew sutat, stated: “to help innovative enterprises create a strong supportive ecosystem in singapore, our partnership with ipos is another step forward. The listing of ssgx is usually one of the most common steps in enterprise development, and we are committed to supporting businesses at all stages of business development. By helping businesses to increase their awareness and understanding of intangible assets, we can add value to our listed enterprises and to the wider business community.”
The ideas programme will run as a pilot scheme until the end of 2020. During this period, the enterprise will be nominated by ipos and ssgx to participate in the scheme and will be supported by ipos to be assessed for intangible assets in order to identify, identify and make more high-quality information on key intangible assets available to stakeholders. Feedback collected during the pilot phase will help to increase public support for future intangible assets. It should be noted, however, that only a small number of enterprises currently have access to the pilot scheme。
The companies listed on ssgx, revez ltd. And hyphens international ltd. And memiontec, which are currently preparing to be listed, are some of the enterprises that have been identified as being eligible for the ideas programme。
Victor neo, vice-chairman of revez and chief executive officer of the group, said: “revez is honoured to be part of the ides project. This is an excellent opportunity for enterprises to identify and identify business values driven by intangible and non-monetary assets, such as our reputation, professional competence and brand value. I am confident that, after ideas, revez will gain valuable intangible asset information to better communicate our position as industry leaders. This will give clients, investors and potential partners confidence in the long-term prospects of our company.”
“we are pleased to have the opportunity to join the ideas project. As the leading special pharmaceutical and consumer health group in asean, hyphens has a large intangible portfolio, which not only separates us from competitors, but also represents an important source of competitive advantage for sustainable growth. We hope that through the ideas programme investors will be better aware of the long-term value of our business.”
Moreover, tay kiat seng, chief executive officer of memiontec, said: “we believe that participation in the ideas programme will help us to understand new insights into the drivers of corporate values, provide us with a deeper understanding of the intangible assets and know-how of companies, and increase our ability to demonstrate our values to clients and investors.”
Research on disclosure of intangible assets and global trends
In today's investment environment, intangible assets account for over 80 per cent of the market value of the standard & poor's 500 index. Over the past decade, the value of global intangibles has tripled to $57 trillion. This also accounts for two thirds of global GDP in 2018. The value of intangible assets in singapore also increased by 150 per cent between 2010 and 2016. Further research shows that leading technology firms that invest in intangibles enjoy a higher rate of return and gain higher profits in intangibles。
Current financial reporting rules place more emphasis on disclosure of tangible than intangible assets. The financial brand global intangible financial tracking (gift) 2019 reported that the value of many intangible assets was not yet known. There is an increasing need for enterprises to reassess the audit and reporting of intangible assets in order to improve the relevance of the information provided to users of financial reports. In february 2019, the uk financial reporting board (uk financial reporting commission) issued a discussion paper in response to frequent calls for reform of the audit of internal intangible assets and to explore ways to improve reporting on relevant factors, which are essential for assessing the value of the enterprise。
(edited from www. Ipos. Gov. Sg)
== sync, corrected by elderman ==
