Reputation decribes the perceptions of the brand, which gives it power and drives its value. It is based on both real and perceived performance of the products and sevices, and affects stakeholder perceptions and behaviour.
Under accounting rules, reputation does not satisfy the identifiability criteria of an asset since it is neither seperable nor does it arise from contractual or legal rights. As such Brand Finance considers reputation to be an important element contributing to brand value, but not to be an asset itself.
