Importance of “life” of Intangible assets

One of the most important input in valuaiton of an intangible assets is its life i.e. the period upto which the assets can generate positive cash flows. As the below case between Amazon and IRS demonstrates, the life being ascribed to an Intangible is often a subjective and debatable issue and can lead to significantly different valuation.

Tax Court Backs Amazon In $1.5B Transfer Pricing Dispute

Please rate this