This effort is assisted in part by a grant from the Program for Export Market Development of the Department of Foreign Affairs and International Trade. The longterm effort may be extended beyond three years. Historically, a brand is a trademark that creates an emotional differentiation for the consumer. What Haigh explained is that companies are beginning to put a dollar value on that emotional difference. Many accountants are slow to grasp the fact that brands can be built, purchased and valued in a silmilar fashion to property, machinery and the other tangible assets around which businesses have traditionally been valued.
Brands constitute the bulk of shareholder value in many Canadian and global companies.
Companies license and litigate brands, they secure borrowings with brands, and huge sums are exchanged when buying and selling brands. ICA produced a comprehensive guide to brand valuation that outlines methodologies in Canada and covers the debate of brand valuation versus brand evaluation. ICA encourages members to send the guide to key clients and start the dialogue around the whole topic of brand valuation, changing accountaing practices and the contribution advertising makes to brand equity and the increased finacial value of the brand. The Member's Only Section of the ICA Web Site is now fully functional. Additional information will be added to this area in due time.