Accounting of brand value: Turkey – Azerbaijan comparison

In the global economy, brands have an important place among intangible assets, making them one of the most valuable assets for businesses. A valuable brand provides the company with the advantage of getting ahead of its competitors in the market and dominating the market. However, as there are many different opinions, the value given to the brand is generally subjective and there is a great debate about reflecting this value to the financial statements. It will be compulsory for the brand value to be included in the balance sheet in terms of top management and non-business information users. In the world and last years in Turkey increase in studies related to the brand and brand values are observed. After leaving the Soviet Union, the concept of brand and brand value in the Republic of Azerbaijan, which is transition a free market economy, has taken its place in the literature. In the process of compliance with the International Accounting Standards (IAS) from the old accounting system applied in the Republic of Azerbaijan, an explanation of the brand concept included in the non-intangible assets was introduced. When we look at the brand and brand value in the country, almost scientific studies have not been done. The reason for this is that it is not given enough attention to the subject of branding, the lack of market in which the brands are traded, and deficiencies in the implementation of current legislation and accounting standards. In this study, the concept of brand and brand value is defined, and financial, customer-based and mixed brand valuation methods are examined, brand value accounted under existing legislation in Turkey and Azerbaijan has been focused on the balance sheet. The purpose of this study is to examine the comparative, the accounting process of brand value in Azerbaijan Accounting System and the accounting process of brand value in Turkey Accounting System. According to the data obtained in this framework, it is aimed to reveal the results and differences related to the accounting of the brand value between the two countries. It is also to develop some suggestions in the context of the results and differences reached.