The value of intangible assets is important in a knowledge-based economy. The market value of many listed companies exceeds their book value, reflecting intangible assets which are not recognised on companies' balance sheets. Such intangible assets include brands, innovation and customer relationships. Despite the importance of intangible assets, accounting standards permit only limited recognition of such assets, partially because of the difficulties associated with reliable measurement. We list below a number of intangible assets and also several approaches which can be used when valuing intangible assets. Consider the following four valuation methodologies. cost approach (the after tax cost which would be incurred in reproducing the asset) market transaction (actual transaction value for identical or similar asset based on an arm's length market transaction) income method (excess earnings: the present value of future earnings generated by the intangible asset net of a reasonable return on other assets contributing to the stream of earnings) income method (relief from royalty approach: the present value of the likely future royalty stream which would be earned from licensing out the intangible asset to a third party) Which of the above approaches are appropriate for each intangible asset listed below? Explain your answers. (a) brands and trade marks (b) patents (c) customer contract (d) internally generated computer software