The book covers financial instruments from the perspective of the issuer as well as the investor. It explains the concept of recognition, classification and subsequent measurement of financial assets and liabilities, de-recognition of financial assets and liabilities and impairment model. It also covers fair value and cash flow hedge accounting, disclosures required for financial instruments, fair value concepts and effects of fluctuations in foreign exchange. It includes lucid commentary on Financial Instruments as per Ind AS, discussing Ind AS 32, Ind AS 109, Ind AS 107, and some portions of Ind AS 113 and Ind AS 21. As we all know, Financial Instruments accounting is a new concept in India. The Indian Accounting Standards relating to financial instruments are quite complex and voluminous. The said standards (along with other 34 standards) are applicable from 1st April 2016 for Phase 1 companies, while the rest of the world would be adopting the equivalent standard IFRS 9 only from 1st Jan 2018. This book includes the basics of financial instruments and also dwells deep into the Indian Accounting Standards mentioned above with several practical case studies along with solutions for the same. Key Features Discussion based on Ind AS 32, 109, 107, 113 & 21 Elucidating topics with practical case studies Includes lucid explanation on hedge Accounting A guide to the certificate course in Ind AS (ICAI) and Dip in IFRS (ACCA, UK).
From the foregoing it is clear that the brand has a value and it can be quantified. The ACTUARIAL BRAND VALUATION advocated above is ideally suitable for Indian conditions. It will be also be clear from the above that this valuation is going to be of immense help to companies in so many areas. It brings out the value of a real asset, which has remained hidden so far. Reporting of the value of this invisible asset will immensely enhance the company’s image and push up its stock market value leading to more sales which in turn will lead to economies of the scale which in turn again will bring down the cost of production. It is also very useful in cases of acquisition/ merger/ takeover/ licensing/ franchising/ joint venture etc. Particularly for the Banks which lend money to the companies against its assets, the brand valuation is a boon as the Bank can now be more aware of the additional security that is available. Also in the software industry there has been a lot of acquisitions not only of companies and brand but also of “Intellectual Property” traits such as trade marks, patents, copyrights and designs, know-how, technology, software and databases. These intangible assets also have the same valuation issues as Brand and can be valued by the methodology described above.
We would like to close this paper with a quote from Pemberton (1998).
“Actuarial Science has a distinctive method which is well-suited to operating within realities in which there are limited regularities. It uses local empirical knowledge to grasp low-level generalisations, has respect for the pattern of local causal influences, and builds bottom-up models for the purpose of establishing approximations. It recognises the role of skill in applied modelling and treats it as central to the method. It is focussed on financial realities”.
Spurred by this quote, we have made a modest attempt to extend the Methodology of Actuarial Science to an area of contemporary concern in Corporate Finance.
In fine, it is no exaggeration to say that a brand revolution is now on and its importance is next only to IT revolution. We can very well say that B(G)rand days are ahead.