UGC Approved Journal no 63975

ISSN: 2349-5162 | ESTD Year : 2014
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Published in:

Volume 8 Issue 7
July-2021
eISSN: 2349-5162

UGC and ISSN approved 7.95 impact factor UGC Approved Journal no 63975

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Published Paper ID:
JETIR2107456


Registration ID:
312370

Page Number

d503-d514

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Title

Valuation of Intangibles of Listed FMCG Company of India

Abstract

The process of accounting is not merely an art rather also the science of measurement. The measurement of the components of intangibles has put a challenge to make the accounting numbers value relevant. In this paper, the value of intangibles is determined at the organisational level taking the difference between the market value of equity and value of equity at the current cost. The market value of equity is lower between market capitalisation and intrinsic value determined with the trailing quarter’s P/E multiple of PAT. The value of equity at current cost is determined after adjusting non-current and non-monetary assets with an adjusted cost inflation index. The index has a base 2001-02 and so the sample company is Godrej Consumer Products Ltd., a constituent of NIFTY FMCG index, which acquired the assets only in 2001-02 after its incorporation in 2000. The company has been reporting intangible assets since the financial year ending 31st March 2002 and the figure of the value of intangible assets disclosed by the company shows a rising trend with disclosure of 52 percent of total assets as intangible assets. However, the price to book ratio remains high at 10.38 as of 31st March 2020. The study finds that the company is reporting only 18% of the value of intangibles, as determined by taking the difference between the market value of equity and equity at current cost, as its intangible assets in its consolidated balance sheet.

Key Words

Value of Intangibles, Market Value of Equity, Equity at Current Cost, P/E multiple, Adjusted CII, Godrej Consumer Products Ltd.

Cite This Article

"Valuation of Intangibles of Listed FMCG Company of India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 7, page no.d503-d514, July-2021, Available :http://www.jetir.org/papers/JETIR2107456.pdf

ISSN


2349-5162 | Impact Factor 7.95 Calculate by Google Scholar

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 7.95 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Cite This Article

"Valuation of Intangibles of Listed FMCG Company of India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 7, page no. ppd503-d514, July-2021, Available at : http://www.jetir.org/papers/JETIR2107456.pdf

Publication Details

Published Paper ID: JETIR2107456
Registration ID: 312370
Published In: Volume 8 | Issue 7 | Year July-2021
DOI (Digital Object Identifier): http://doi.one/10.1729/Journal.27696
Page No: d503-d514
Country: CUTTACK, ODISHA, India .
Area: Commerce
ISSN Number: 2349-5162


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