Abstract:

With the changes in the economic trend of the globe, asset owner has pressed alarm bottom necessitating the need for valuation of their asset Many appraisers have not using the comparison method of valuation in the valuation of an intangible asset due to a lack of know-how to utilized the available parameters of the methods such as sourcing of comparable assets, data of recent market transaction, adjustment techniques, and local assets features such state of the asset and location the comparative approach is incorporated into international valuation standards (IVS) and European valuation standards (EVS) as a primary method for determining the market value of the asset.

This study aimed to explore the parameters of comparable method valuation use in the valuation of intangible assets, the study involves the intensive review of existing literature, valuation guideline, frameworks, and valuation exercise to explore the parameter used in the method during valuations exercise, from the reviews stated above it was obtained that comparable assets, data of recent market transaction, adjustment techniques, use of the asset, assets features such as the condition of the asset and location are some of the parameters of consideration when using the method. It is concluded that having the parameter and technical know-how to handle accrued to arrival at reliable capital value and also lack proper handling of the parameter lead to bias and unreliable capital value using the method.