January 20, 2022
Large parts of the financial community agree that the disclosures about intangible assets on balance sheets and in the sidenotes are insufficient and largely unsatisfactory. This applies to both internally generated and acquired intangible assets. Preparers are said to hide away, encrypt, condense, or dilute information on intangible assets to a maximum, thereby annihilating informational content.
This is not fully true. When acquiring our data, MARKABLES professionals browse tens of thousands of financial statements worldwide to identify meaningful financial disclosures on intangible assets. Some of these disclosures are worth being highlighted for their informational value. Below is one example.
Malta-based Aspire Global plc is a business-to-business (B2B) provider of iGaming solutions for the online gaming market. Its B2B-offering comprises of a technical platform, casino games, a sportsbook, and a game aggregator. In 2020, Aspire acquired BtoBet Ltd, a leading international B2B sportsbook and technology provider headquartered in Gibraltar. In the PPA disclosure, Aspire revealed all assets and liabilities, including three different intangible assets and their useful life.
However most unusual – and worthy of distinction – is the disclosure of the full-year revenue, EBITDA and net income of the acquired business during the year of the acquisition. This add-on information gives the reader a good understanding of revenue and profit ratios of the acquired business and its assets. We find this excellent and reward it with the MARKABLES Intangibles Disclosure Award.