In the evolving intellectual property and intellectual asset digital economy, accurately managing software by and within an enterprise is beginning to be ever more critical. Valuation and validation are required by government regulations such as Sarbanes–Oxley and Federal Accounting Standards Board (FASB) 141/142. These force careful governance of intellectual property including software not to mention the acquisition landscape.
Addressing this challenge requires that three questions be answered:
- What software assets have value?
- Which of these software assets can be monetized?
- How much might an institution lend on the software as collateral or how much might an acquiring company establish as fair transaction value?