IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF ENTREPRENEURIAL DEVELOPMENT STUDIES (WJEDS )

E-ISSN 2579-0544
P-ISSN 2695-2483
VOL. 8 NO. 2 2023
DOI: https://doi.org/10.56201/wjeds.v8.no2.2023.pg60.73

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Relevance of Brand Accounting: A Contemporary Disclosure

Christiana QUESTION & Prof. Stanley OGOUN

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Abstract

Brand accounting is inherently subjective, yet its significance in the current competitive business landscape cannot be overlooked. In today's fiercely competitive landscape, shoppers are mostly swayed by the brand's reputation when making purchasing decisions. The brand image exerts an enduring influence on the customer, causing them to persist in their preference for a particular brand even in the presence of more cost-effective competitors. We rethought how brands should be understood and evaluated after realising that stock market prices and financial statements do not effectively portray the genuine worth of brands owned by firms. The marketing approach, the financial approach, and the economic use approach are the three current ways to determine a brand's worth. The marketing plan considers the worth of the brand in connection to factors pertaining to consumers; in this method, the variables are typically qualitative in nature. Brand loyalty, preferences, and satisfactions are all part of the picture. Quantitative elements like profit and cost are prioritised in the financial approach to assessing brand value. Accountants appreciate this strategy because it offers a dependable way of quantifying. Both the marketing and financial perspectives employ a narrow focus in their approaches to valuation. This leads to the adoption of the economic usage approach, which integrates the preceding two techniques and assigns a monetary value to brands based on contemporary corporate finance theory.

keywords:

Brand Accounting, Contemporary disclosure, Brand Valuation

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References:

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D. (2014). What is brand identity? Retrieved from https://www.prophet.
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Akki, M. (2020). Brand Accounting. Slideshare.
Ashiaf, M., Sulehri, H. A., & Abbas, S. (2018). Impact of brand association on consumer buying
behaviour in footware industry: The case of Punjab, Pakistan. International Journal of
Academic Research in Business and Social Sciences, 8(2), 91-102.

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