Wanted: Domain Appraisal please help apraise & advise company name

[Mendis]

Please please help a beleaguered small business man in need.

I read recently in a trade article that the majority of company’s could be massively underestimating the value of their domains.

This brought me out in a cold sweat.
I have just spent almost 2 hectic months trying to grab a half hour here & there in my busy working day - woe is me - to get my December stock take finished.
Having breathed a big sigh of relief last week & finally presented my despairing accountant with the figures I then read the trade article mentioned above.

Anyway, enough rambling, I hope no donkeys read this or I may have talked their hind legs off.:???:
My question is this:
domain names obviously have value to a company, but as valuation seems to be extremely subjective depending on who does the valuing, is there a recognised way to get a figure put to a name (any service or process etc) whereby the figure is admissible as a true value to people like the tax man (or whoever it is that insists on company accounts)?

oh: The domains are
Kindways.com & co.uk
I would also be really grateful for your own esteemed estimations, I've looked through a few other forums & never posted or joined, but this forum seems friendlier with a lot of folks who obviously know exactly what they are talking about.

Thank you in advance for any help or advice you can give.

 

[aqls]

Historical cost would be about £5 depending on where you bought them.

-aqls-

 

[Mendis]

cool, thanks for replying

Please excuse my ignorance, but do you say it's about £5 for the bookwork because thats about what I paid to register, so they'll always be valued for assets at what they cost me.

or is it just because the domain is rubish? :???:

thanks again for your help.

 

[aqls]

I haven't valued it's potential worth, just it's purchase price.

It's also been suggested on this forum that you could list them as advertising expense.

-aqls-

 

[bb99]

Mendis, there are only certain circumstances whereby you can inflate a domain name's value beyond its cost in your company accounts. Generally speaking, if you registered them when they were unavailable (rather than buying them from someone else) they can't be revalued upwards in your accounts.

 

[olebean]

Mendis

The question is, what are you looking to do with the value and how did you originally put the domains through your accounts....

If your looking to inflate the value of your company then the only way is appraisal, I understand that domains can be treated similarly to property... Do keep in mind corporation tax etc..

If you placed the domains in the accounts as advertsing, reversing them out would be the normal process.

Please remember this is not professional advise, you should speak to your accountant.

One other thing if your valuing your companies stock I assume your not audited due to turnover being less than 450k.

If you are looking to inflat business value watch your gross margins and stock value.

Otherwise right the domains off through advertsing

 

[Mendis]

Hi there,
Thank you all so much for your input; it’s certainly a lot of food for thought.
Looks like I can at least stop worrying that I’ve missed something that might have high(ish) value to the company.

My colleagues asked me to research the company domain name a bit because I mentioned I’d been reading up on the subject in general. Now I can take my work hat off again & get back to studying the domain name scene more for evening relaxation…. But that’s another story. I’m off to the new members bit to introduce myself in the proper place.

Cheers all.