Resources also unveiled to help enterprises manage Intellectual Property
A new framework to disclose and communicate the value of intangible assets (IA) was launched today alongside new resources to help enterprises manage and commercialise their intellectual property (IP).
The Intangibles Disclosure Framework (IDF), unveiled by the Intellectual Property Office of Singapore (IPOS) and Accounting and Corporate Regulatory Authority (ACRA), is among the first in the world. With the growing importance of IA1, the IDF provides a systematic and consistent way to disclose and communicate IA such as brand value, patents or registered designs. Enterprises are also encouraged to disclose IA beyond those recognised under the accounting standards (e.g., human capital and/or internally generated intangibles) under the voluntary framework.
A recent survey conducted by IPOS revealed that four out of five enterprises wished they had more opportunities to use their IA for business, including obtaining financing.
“The IDF is part of the Singapore IP Strategy 2030 and is a key step to help enterprises commercialise their IA. Improving IA disclosures can lead to better investment decisions, improved risk management, and increased competitiveness in our markets.” said Second Minister for Finance, Indranee Rajah at IP Week@SG 2023.
The disclosure principles in the IDF are anchored in four pillars:
• Strategy: Helps enterprises communicate how their IA contribute to their overall corporate strategy.
• Identification: Recommends how enterprises should categorise IA based on their nature and characteristics, facilitating comparability.
• Measurement: Guides enterprises and stakeholders to make better assessments of the performance of enterprises’ IA through relevant metrics.
• Management: Helps enterprises identify, assess, and manage risks and opportunities related to their IA.
The IDF is a public-private initiative led by IPOS and ACRA, and was developed by an industry working group comprising representatives from the accounting, valuation, legal and finance sectors (see Annex A for an infographic on the IDF).
“IP is one of our most valuable assets and being able to systematically determine and map our intangibles to strategy and performance allows us to unlock more value from IP to support our
1 More than 90% of value from the S&P 500 is made up of intangible assets
expansion. Harmonising intangibles disclosure will provide more clarity in assessing the financial prospects within our sector, and potentially boost funding prospects which will enable businesses like ours to truly grow with IP”, says Kurt Wee, Founder and CEO of Celligenics.
New IP Resources
Enterprises can also tap on new resources to manage their IP.
1. GoBusiness IP Grow platform connects enterprises with a suite of IA/IP service providers and resources, as well as an e-Adviser tool for live, customised recommendations, wherever they are on their IP journey.
2. IP Ready programme helps enterprises build internal capabilities to manage IP. They will be paired with an IP strategist to develop an IA strategy, institutionalise IP management processes, and build skills for long-term IA/IP and business growth.
3. MOU with Singapore Business Federation will build IP capacity and provide in-market assistance to Singapore-based businesses through access to GlobalConnect@SBF’s internationalisation services, market advisors and global contacts.
IP Award Winners 2023
Winners of the WIPO-IPOS IP for Innovation Awards were also announced at IP Week@SG 2023. Hailing from the biotech, entertainment and transport sectors, the companies were recognised for outstanding use of IP in their business (see Annex D for details).
The event also marked the opening of the 70th ASEAN Working Group on IP Cooperation (AWGIPC) Meeting. Established in 1996 and comprising IP offices of the ASEAN Member States, the Group develops, coordinates, and implements all IP-related regional programmes and activities in ASEAN.
Annexes
• Annex A: Intangibles Disclosure Framework Infographic
• Annex B: Quotes From Industry Partners on the IDF
• Annex C: Quotes From Enterprises On New IP Resources • Annex D: WIPO-IPOS IP For Innovation Awards 2023 Winners
See full Annex here.
