The historical cost or replacement cost method
How can we make the most of intellectual property protection?

This method is based on the following principle: the value of an intangible asset is at least equal to the investment a company would have to make to develop or reconstitute an alternative or similar asset.

The value of historical or replacement costs is therefore made up of the compilation :

• creation costs ;

• (in terms of equipment and man-days) ;

• intellectual property costs (e.g. patent, trademark and design registrations) ;

• development costs (including advertising and marketing costs for brands) ;

which were necessary to build up these assets (not forgetting financial and administrative costs).

This is a method that takes a snapshot at a given moment in time of the amounts spent in the past to obtain the technology.

This is often the "floor" value of an asset, and can also serve...