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25% Rule

Traditional 25% rule for profit allocation

Formula

Source: Ch 6, Section 6.2

Sources & references

Intangible Asset Valuation (source book) — Ch 6, Section 6.2
IAS 38 — Intangible Assets (IFRS Foundation)link
IFRS 13 — Fair Value Measurement (IFRS Foundation)link
International Valuation Standards (IVS) 2025 — incl. IVS 104, 105, 106, 210 (International Valuation Standards Council)link

licensee_expected_profitnumber • required

Licensee expected profit