Intangible Assets Appraisal in Costa Rica: Brands, Clients, Goodwill 2026

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 IAS 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 (IAS 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:

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

1. Purchase Price Allocation (PPA) after M&A: IFRS 3 requires separating intangibles from goodwill
2. Periodic IFRS revaluation of finite-life intangibles
3. Brand licensing to third parties: define royalty
4. Corporate dispute over brand/client value
5. Sale or assignment of the brand or portfolio to third parties
6. Intangible contribution to corporation (allowed under IFRS)

Judicial scenarios

1. Divorce with company where brand has value (Family Code)
2. Litigation over improper brand use: damage calculation
3. Patent infringement: damages
4. Unfair competition: goodwill loss valuation

Tax scenarios

1. Hacienda reviews intangible value in related-party operation (transfer pricing)
2. Patrimonial declaration when intangibles are material

IAS 38: Costa Rican accounting framework

Companies with IFRS audit apply:

• IAS 38 (Intangibles): recognition and measurement
• IFRS 3 (Business combinations): identify acquired intangibles
• IAS 36 (Asset impairment): impairment tests for indefinite-life intangibles

IAS 38 criteria to recognize an intangible:

1. Identifiable (separable or arises from contractual rights)
2. Control by company
3. Future economic benefits probable
4. 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? IAS 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? From approx. ₡150,000 (USD 300); the final amount is set in the quote. A simple brand requires less analysis than a client portfolio or a medium company’s complete intangibles portfolio, and that is reflected in the fee.

How long does it take? 3 to 7 business days once documentation is complete (financial statements, projections, contracts and registrations). It requires deep financial analysis plus sectoral market research, so it helps to gather the information before starting.

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

Díaz Peritajes, a firm with several professionals founded by Ing. José Alberto Díaz Vidaurre (a CFIA-licensed appraiser, license ICO-3075), specializes in tangible asset valuation: real estate, machinery, industrial equipment. Specific valuation of intangible assets (brands, patents, customer portfolio, goodwill, software, IAS 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.