Intangible asset appraisal in Costa Rica is one of the most specialized valuations: registered brands, patents, internally-developed software, client databases, long-term contracts, licenses. These assets can represent 40-70% of total value of modern companies but rarely appear on the accounting balance. This guide covers intangible types, methodology under IFRS 38, and 2026 practical cases.
What are intangible assets?
An intangible asset is a non-physical but identifiable and controllable resource generating future economic benefits. Different from:
- Tangible assets (real estate, machinery) — physical, visible
- Goodwill — difference between price paid and fair value of identifiable assets (residual)
Intangible classification (IFRS 38)
1. Marketing intangibles
- Registered trademarks — Coca-Cola, strong local brands
- Trade names and domains
- Mottos / slogans
- Certifications and accreditations
2. Client relationship intangibles
- Client lists
- Long-term contracts (with incremental value vs market prices)
- Pipeline orders (backlog)
3. Contractual intangibles
- Licenses and franchises
- Favorable lease contracts
- Exclusivity contracts with suppliers/distributors
- Permits and concessions
4. Technology intangibles
- Patents (registered inventions)
- Proprietary software (internally developed)
- Technical know-how and trade secrets
- Proprietary databases
5. Artistic intangibles
- Copyrights (books, music, art)
- Audiovisual rights
Main valuation methodologies
1. Relief-from-Royalty (RFR) — most used for brands
Estimates value as hypothetical royalties the company saves by owning the intangible (instead of licensing it).
Formula:
Value = Σ [(Revenue × Royalty rate) × (1 − taxes) / (1 + WACC)^t]
Example: CR craft beer brand
- Projected revenue year 1: $3,500,000 growing 5% annual for 10 years
- Market royalty rate (beer sector): 4%
- Tax rate: 30%
- WACC: 13%
Approximate brand value: $1,100,000
Typical CR 2026 royalty rates:
| Industry | Royalty % revenue |
|---|---|
| Software / tech | 10-25% |
| Beverages (beer, soda) | 3-6% |
| Fashion / apparel | 5-10% |
| Pharmacy | 5-12% |
| Restaurants / franchises | 4-8% |
| Professional services | 2-5% |
| Entertainment / media | 5-15% |
2. Multi-Period Excess Earnings Method (MPEEM) — for clients
Calculates earnings attributable to specific client relationship in excess of what average client generates.
Conceptual formula:
Client value = PV(attributable profit × retention probability year t)
Considers:
- Customer attrition (annual loss rate): typically 10-25% per industry
- Client-attributable margin vs average margin
- Projectable relationship duration
Example: B2B distributor
- 100 active clients
- Gross margin per client: $5,000/year
- Attrition rate: 15% annual
- Horizon: 8 years
- WACC: 15%
Client portfolio value ≈ $2,000,000
3. Replacement cost
For intangibles that can be “recreated” (software, databases, documented know-how):
Value = Development costs at present value × (1 − obsolescence)
Includes: developer salaries, testing, implementation, documentation.
4. Adjusted historical cost
For licenses and permits where cost paid is known: update to present value.
When intangibles appraisal is needed in CR
Corporate scenarios
- Purchase Price Allocation (PPA) after M&A — IFRS 3 requires separating intangibles from goodwill
- Periodic IFRS revaluation of finite-life intangibles
- Brand licensing to third parties — define royalty
- Corporate dispute over brand/client value
- Corporate bank collateral (less common, some banks accept)
- Intangible contribution to corporation (allowed under IFRS)
Judicial scenarios
- Divorce with company where brand has value (Family Code)
- Litigation over improper brand use — damage calculation
- Patent infringement — damages
- Unfair competition — goodwill loss valuation
Tax scenarios
- Hacienda reviews intangible value in related-party operation (transfer pricing)
- Patrimonial declaration when intangibles are material
IFRS 38 — Costa Rican accounting framework
Companies with IFRS audit apply:
- IFRS 38 (Intangibles) — recognition and measurement
- IFRS 3 (Business combinations) — identify acquired intangibles
- IFRS 36 (Asset impairment) — impairment tests for indefinite-life intangibles
IFRS 38 criteria to recognize an intangible:
- Identifiable (separable or arises from contractual rights)
- Control by company
- Future economic benefits probable
- Reliably measurable cost
Internally generated intangibles have restrictions — internally-generated brands, client lists, and goodwill are NOT recognized (only acquired).
Real CR 2026 cases
Case 1: purchase of company with strong brand
US corporate acquires 40-year Costa Rican food company with strong brand.
- Purchase price: $15,000,000
- Net adjusted tangible assets: $6,000,000
- Identifiable intangibles (brand + clients): $5,500,000
- Residual goodwill: $3,500,000
Brand and client appraisal allows acquirer to recognize and depreciate/amortize those intangibles (fiscally beneficial).
Case 2: brand licensing to regional operator
CR company licenses brand to operator in Panama.
- Projected Panama revenue year 1: $800,000
- Market royalty rate: 5%
- Annual royalty: $40,000
- 10-year agreement
Appraisal determines $40K/year is reasonable rate; if operator offered $25K/year was undervalued.
Case 3: corporate dispute over client portfolio
Departing partner claims proportional share of client portfolio he developed.
- Portfolio: 150 active clients
- Partner contributed relationship with 30 main clients (50% of margin)
- MPEEM appraisal: portfolio value = $1,200,000
- Partner-attributable share: $600,000
FAQ
Does my SME brand have value if not registered? Partial. Unregistered brand has market value but lower than registered (40-70% of equivalent registered). Registration recommended to protect and enable full valuation.
Can I sell only the brand keeping the company? Yes, via assignment or licensing. Hacienda may review if between related parties (transfer pricing).
Does internally-developed software have book value? IFRS 38 allows capitalizing some development costs (NOT research). If capitalized, has book value; if expensed, doesn’t appear but can be appraised for other purposes.
How much does intangibles appraisal cost? Simple brand: $2,500-$6,000 USD. Client portfolio: $3,500-$10,000. Complete portfolio medium company: $8,000-$25,000.
How long does it take? 15-45 days per complexity. Requires deep financial analysis plus sectoral market research.
Is CFIA appraiser competent authority for intangibles? CFIA + corporate valuation experience + coordination with CPA auditor = correct combination. Not every CFIA has intangibles experience — choose with criteria.
Professional scope
Ing. José Alberto Díaz Vidaurre is a CFIA-licensed certified appraiser (license ICO-3075), specialized in tangible asset valuation: real estate, machinery, industrial equipment. Specific valuation of intangible assets (brands, patents, customer portfolio, goodwill, software, IFRS 38) requires specialized financial methodology that we execute in coordination with certified CPA auditors and corporate valuation consultants. This post serves as an educational guide; for a formal intangibles appraisal for your company, contact us to assemble the appropriate multidisciplinary team for your case.
Conclusion
Intangible assets are the “hidden jewel” on balance of many Costa Rican companies: brands built over decades, loyal client bases, unique know-how. Appraising these assets requires combining financial techniques (DCF, royalty relief, MPEEM) with sectoral knowledge and IFRS framework. A professional appraisal can reveal significant value not reflected in financial statements, and is essential in M&A, licensings, disputes, and corporate successions.
Díaz Peritajes performs intangible asset appraisals coordinating with CPA auditors and corporate attorneys. Nationwide coverage from Pérez Zeledón and Curridabat. Over 20 years of experience in corporate valuations. WhatsApp +506 7272-7270.