The problems of determining the fair value of intellectual property in the structure of assets of financial institutions

Abstract

A strong and stable financial sector is the main element of investment inflow and increase of liquidity in the economic system of the state, striving for a developed economy. The practice of several previous years has shown the presence of certain factors of instability in the Russian financial sector. The most important factor of the instability of the national financial sector is the problem of ensuring the financial obligations of financial institutions, which at best forces credit institutions and investment institutions to introduce external management from the Central Bank, and in the worst case leads to bankruptcy. Traditionally, the main direction in assessing the quality of assets of financial institutions is to determine the market (fair) value of tangible assets, namely financial assets and real estate. However, recent events that have occurred with large Russian credit institutions have revealed shortcomings in this approach. First of all, since the objects of intellectual property and other intangible assets are either undervalued or overvalued. Proceeding from these facts, the team of researchers developed and presented a mathematical model that allows an alternative valuation of intangible intellectual assets in the ownership structure of financial institutions. The model was used to analyze the activities of individual financial organisations operating within the national economic system. © 2018 Institute of Physics Publishing. All rights reserved.