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Dear Tutor,
Recently I came across some random youtube video for ACCA AFM where they were talking about “valuing intellectual capital” through methods such as Market-to book values, Tobin’s Q and Calculated Intangible Value. I just want to confirm if this is something within scope of our study because I don’t see anything about it in lecture notes.
Thanks.
The Q value did appear in one exam question (about 15 years ago) but was defined in the question and so it was simply following instructions.
None of what you refer to is now examinable and so I don’t know what it was in your random video 🙂
Hi John
I already covered all these 3 topics as part of my studies (Tobin Q, Calculated Intangible Values and Market-to-book Value) when I went through KAPLAN’s recent textbook, under the Chapter “BUSINESS VALUATION”
They are part of Market-Based methods and Asset-Based methods: Syllabus C2 Valuation for Acquisitions and Mergers.
So are we saying that none of these methods are examinable?
Thank you.
aamir2111: You are welcome 🙂
joevassallo: The current examiner (who has been the examiner for 10 years now) has never asked for the valuation of intangibles and it is not mentioned in the syllabus.
He frequently asks for the valuation of a company when there is an acquisition and can ask for book value and market based (in which case it would be following the instructions in the question) but is virtually always using free cash flows or occasionally a PE valuation (which is market based).
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