Infosys Technologies Ltd : The Infosys Brand (A1)

Published 01 Jul 2006
Reference 5384
Region Asia
Summary

The case discusses Infosys Technologies decision to try to capitalize an amount for its brand value. Believing that accounting does not capture all the relevant economic resources companies, Infosys, calculates a value for its brand and discloses it in supplementary filings. We discuss various brand valuation techniques that are used in the market and highlight a few examples of companies that own the most valuable brands in the world.

Teaching objectives

Highlight the limitations of financial accounting with regards to intangible assets such as brand. Accounting standards do not permit companies to record on their financial statements intangible assets such as brands that were internally developed. The case provides an opportunity to discuss this issue and suggets a solution adopted by Infosys Technologies - the capitalization of brand value on its supplementary financials. The next question, is how should Infosys, or any other company, value its brand.

Keywords
  • AR2006
  • AR0506
  • RD0706
  • Brand
  • Technologies
  • Accounting
  • Premium
  • Human Capital
  • Intangible Assets
  • India