I need to measure the trademark for the planned license agreement concluded between related parties.  

Is the valuation must be made using the comparative method?


The laws of many countries, including Polish (Reg. Ministry of Finance) and the regulations contained in the International Standards of Accounting and Financial Reporting, prefer the use of market-based approach in the valuation of intangibles for transfer pricing purposes and the needs of the balance sheet. The comparative method is generally the preferred method for detailed.

The problem is that there is no active market on which the transactions would be of this type. The use of the comparative method in these conditions should be regarded as a very risky operation. From my many years of experience that it is easy to challenge the correctness of the application of the comparative method, even in the comparability of the criteria developed by the OECD and implemented in the tax legislation.

However, there is a fairly simple way out of this situation. Instead of reality and stretch to say that "the horse is almost the same as a sheep", use of other approaches (eg income) and specific valuation methods, acceptable from the point of view of the law, of course, after checking that the comparative method can not be reliably apply the information in the given conditions.