ISO 10668 is a specification by the International Organization for Standardization (ISO) for the procedures and methods of measuring the value of a brand.
In 2007 ISO set up a task force to draft an International Standard on monetary brand valuation. After 3 years the ISO 10668[1] – Monetary Brand Valuation – was released in Autumn 2010. This sets out the principles which should be adopted when valuing any brand.
ISO 10668 applies to brand valuations commissioned for all purposes, including:
- • Accounting and financial reporting
- • Insolvency and liquidation
- • Tax planning and compliance
- • Litigation support and dispute resolution
- • Corporate finance and fundraising
- • Licensing and joint venture negotiation
- • Internal management information and reporting
- • Strategic planning and brand management
The last of these applications include:
- • Brand and marketing budget determination
- • Brand portfolio review
- • Brand architecture analysis
- • Brand extension planning
Under ISO 10668 the brand valuer must declare the purpose of the valuation as this affects the premise or basis of value, the valuation assumptions used and the ultimate valuation opinion, all of which need to be transparent to a user of the final brand valuation report.