October 5, 2015
While valuators tend to describe trademarks as having an indefinite life, this is seldom the case. However, there are various ways to estimate a
mark’s remaining useful life, which can be beneficial for accounting.
Authors Christof Binder, Anke Nestler and Robert B. Morrison published an article “Accounting for trademarks – indefiniteness is no more than an interim solution” in World Trademark Review, Oct/Nov 2015.
They explain the consequences of indefinite life accounting, analyze what happens to such assets on European balance sheets in the long run, and present various approaches how to determine the useful life of trademarks.
The full article is downloadable here.