The opening day of IP Week@SG 2023 on September 4 at Marina Bay Sands Expo & Convention Centre in Singapore saw the launching of a framework for enterprises to disclose and communicate the value of their intangible assets (IA).

Launched by the Intellectual Property Office of Singapore (IPOS) and the country’s Accounting and Corporate Regulatory Authority (ACRA), the Intangibles Disclosure Framework (IDF) is among the first in the world. It provides a systematic and consistent way to disclose and communicate IAs such as brand value, patents or registered designs. Enterprises are also encouraged to disclose IAs beyond those recognized under the accounting standards such as human capital and/or internally generated intangibles, under the voluntary framework.

“The IDF is part of the Singapore IP Strategy 2030 and is a key step to help enterprises commercialize their IA,” said Second Minister for Finance Indranee Rajah at IP Week@SG 2023 which will run until September 8.

According to the IPOS website, Singapore IP Strategy 2030 is “a national strategy that supports enterprises and the wider innovation community. It will contribute to Singapore’s position as a global-Asia node of technology, innovation and enterprise, and support our wider Research Innovation Enterprise (RIE) objectives.”

“Improving IA disclosures can lead to better investment decisions, improved risk management and increased competitiveness in our markets,” Rajah added.

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 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 categorize 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 was developed by an industry working group comprising representatives from the accounting, valuation, legal and finance sectors.

“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 expansion. Harmonizing 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 Singaporean biotech firm Celligenics.

In addition to the launching of the IDF, new resources to help enterprises manage and commercialize their IP were also unveiled. These are:

• 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, customized recommendations, wherever they are on their IP journey.
• IP Ready programme helps enterprises build internal capabilities to manage IP. They will be paired with an IP strategist to develop an IA strategy, institutionalize IP management processes and build skills for long-term IA/IP and business growth.
• MOU with Singapore Business Federation will build IP capacity and provide in-market assistance to Singapore-based businesses through access to GlobalConnect@SBF’s internationalization services, market advisors and global contacts.

Asia IP