There are many definitions of brand ranging from the whole branded business, referring to the whole enterprise trading under a specific brand name, through to the specific bundle of trademarks and associated intellectual properties that CFOs recognise as one accounting asset called ‘brand’ and now regularly record in balance sheets and tax returns.
Accountants regard ‘brands’ as accounting assets so long as they are protected by legal rights, can be separated from the business, elicit a favourable behavioural response from their stakeholders, leading to measurable economic benefits now and in the future that can be reliably valued. The valuations are generally discounted cashflow valuations of expected future ‘brand’ earnings or profits.
The latter, narrower definition of ‘brand’ is a crucial Intellectual Property driving performance in the broader ‘branded business’. This is the asset that the International Standards Organisation created ISO 10668 (Monetary Brand Valuation) in 2010 to reliably value. ISO 10668, which Brand Finance helped to create, is a global standard now widely accepted by financial audiences.