A new framework for disclosing and communicating the value of intangible assets (AI) was launched on September 4, along with new resources to help companies manage and market their intellectual property (IP).
The Intangibles Information Framework (IDF), launched by the Intellectual Property Office of Singapore (IPOS) and the Accounting and Company Regulation Authority (ACRA), is one of the first in the world.
Given the growing importance of AI, the IDF provides a systematic and consistent way to disclose and communicate AI, such as brand equity, patents or registered designs. Companies are also encouraged to disclose AI beyond those recognized in accounting standards (for example, human capital and/or internally generated intangibles) on a voluntary basis.
A recent survey by IPOS revealed that four out of five companies would like more opportunities to use their AI for their businesses, including obtaining financing.
“The IDF is part of Singapore’s IP 2030 Strategy and is a key step in helping companies commercialize their AI. Improved AI disclosure can lead to better investment decisions, better risk management and increased competitiveness in our markets,” Indranee Rajah, Deputy Minister of Finance, said at IP Week@SG 2023.
Pillars of disclosure principles
The FID disclosure principles are based on four pillars:
- Strategy: Help companies communicate how their AI contributes to their overall corporate strategy.
- Identification: recommends how companies should classify IE based on their nature and characteristics, facilitating comparability.
- Measurement: Guides companies and stakeholders to better assess the AI performance of companies through relevant metrics.
- Management: Helps companies identify, assess and manage the risks and opportunities related to their AI.
Singapore, Indonesia Strengthen Bilateral Relations at Indonesia’s 78th Independence Day Diplomatic Reception
The IDF is a public-private initiative led by IPOS and ACRA, and was developed by an industry working group comprised of representatives from the accounting, valuation, legal and financial sectors.
“Intellectual property 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 intellectual property to support our expansion. Harmonizing the disclosure of intangibles will provide more clarity when assessing financial prospects within our industry, and potentially boost the funding prospects that will allow companies like ours to truly grow with IP,” says Kurt Wee, Founder and CEO of Celligenics.
New IP resources
Companies can also turn to new resources to manage their IP.
The GoBusiness IP Grow platform connects businesses with a suite of AI/IP resource and service providers, as well as an e-Adviser tool for real-time personalized recommendations, wherever they are on their journey to ownership. intellectual.
The IP Ready program helps companies build internal capabilities to manage IP. They will be paired with an IP Strategist to develop an AI strategy, institutionalize IP management processes, and build capabilities for long-term AI/IP and business growth.
the IDF provides a systematic and consistent way to disclose and communicate AI, such as brand equity, patents or registered designs
The MoU with the Singapore Business Federation will build IP capacity and provide Singapore-based companies with market support through access to GlobalConnect@SBF internationalization services, market advisors and global contacts.
IP Awards 2023 Winners
IP Week@SG 2023 also announced the winners of the WIPO-IPOS Awards for Innovation in Intellectual Property. Coming from the biotech, entertainment and transportation sectors, the companies were recognized for their exceptional use of IP in their business.
The event also marked the opening of the 70th meeting of the ASEAN Working Group on Intellectual Property Cooperation (AWGIPC). Established in 1996 and composed of the IP Offices of ASEAN Member States, the Group develops, coordinates and implements all regional IP-related programs and activities in ASEAN.