Singapore launches IP disclosure scheme to ‘unlock value’ within companies
The ‘first of its kind’ framework encourages businesses to disclose intangible assets outside the normal accounting standards | Framework aims to help unlock the value of brands, patents and registered designs, among others.
Singapore has released an Intangibles Disclosure Framework (IDF) aimed at helping business enterprises to disclose and communicate the value of their intangible assets (IA).
Developed in partnership between the Intellectual Property Office of Singapore (IPOS) and the country’s Accounting and Corporate Regulatory Authority (ACRA), the IDF is “among the world's first comprehensive frameworks of its kind,” said the press release.
Significantly, it encourages business enterprises to disclose IA beyond those formally recognised under accounting standards, such as human capital and internally generated intangibles.
A recent survey conducted by IPOS revealed that four out of five enterprises wished they had more opportunities to use their IA for business, including obtaining financing.
In recognition of this, the IDF offers enterprises a “systematic and consistent approach to disclosing and communicating IA, including elements such as brand value, patents, and registered designs”.
The IDF rests on four key pillars:
- Strategy: This pillar assists enterprises in articulating how their IA contributes to their overall corporate strategy.
- Identification: Recommendations are provided on how enterprises should categorise IA based on their nature and characteristics, enhancing comparability.
- Measurement: The framework guides enterprises and stakeholders in making better assessments of IA performance through relevant metrics.
- Management: This pillar helps enterprises identify, assess, and manage risks and opportunities related to their IA.
A recent survey conducted by IPOS found that four out of five business enterprises expressed a desire for more opportunities to leverage their IA for business purposes.
Second minister for finance, Indranee Rajah, speaking at IP Week@SG 2023, said, "The IDF is part of the Singapore IP Strategy 2030 and is a key step to help enterprises commercialise their IA.
“Improving IA disclosures can lead to better investment decisions, improved risk management, and increased competitiveness in our markets."
Kurt Wee, founder and CEO of biotech Celligenics, welcomed the framework, saying, "IP is one of our most valuable assets, and being able to systematically determine and map our intangibles to strategy and performance allows us to unlock more value from IP to support our expansion.
“Harmonising intangibles disclosure will provide more clarity in assessing the financial prospects within our sector and potentially boost funding prospects, enabling businesses like ours to truly grow with IP.”
See more on the Intangibles Disclosure Framework
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