AICPA seeks input on Goodwill Impairment Practice Aid
FASB first introduced the concept of “step zero” under its Accounting Standards Update 2011-08, published last September, by which entities may review certain qualitative factors to determine whether goodwill impairment is “more likely than not,” explained Mark Zyla (Acuitas Inc.) during last week’s BVR webinar on the topic. If so, then ASU 2011-88 permits entities to skip the [...]
Majority of companies will ‘go it alone’ on goodwill impairment
Is there a role for the independent valuation specialist under the FASB’s new “qualitative” option for assessing goodwill impairment? That was a hot topic of discussion at the third annual Fair Value Summit sponsored by the ASA San Francisco earlier this month. “We’re hearing that a great number of clients are electing to ‘go it [...]
“FASB helps us out with market participant definitions”
In most valuations, the question of ”market participant” can influence the ultimate conclusion. So, appraisers need to be careful to avoid entity-specific synergies in most of their work–if one specific buyer in a group of likely market participants has a competitive advantage over the others, this fact generally should not influence the ultimate determination of [...]
AICPA revised IPR&D Aid will expand valuation techniques for acquired R&D
The newly revised IPR&D Practice Aid from the AICPA will significantly expand consideration of various valuation techniques, Tony Aaron (Ernst & Young), co-chair of the AICPA task force that’s revising the Aid, told ASA attendees this week. For example, compared to the 2001 first edition, in which the valuation chapter contained only 70 paragraphs, the revised [...]
ASA Fair Value Summit in SF Nov. 11
The ASA is continuing the Fair Value Summit tradition again this year. Registration info is available here. The agenda is not available yet.
FASB announces effective date for goodwill impairment update
Just two weeks ago, the FASB issued Accounting Standards Update No. 2011-08,Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. More recently, the FASB announced that the amendments in this update will be effective “for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.” Early adoption is permitted, the FASB [...]
FASB “simplifies” impairment testing
On Wednesday, the Financial Accounting Standards Board (FASB) approved a revised accounting standard intended to simplify how an entity tests goodwill for impairment. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not [...]
If you care about the cost of capital, be there for the Duff & Phelps Risk Premium Calculator debut
No doubt you’ve heard the buzz about the Calculator and its imminent arrival on the valuation scene. As a special launch event BVR will host Jim Harrington, co-creator (with Roger Grabowski) of the Duff & Phelps Risk Premium Calculator on Friday, February 18 for a free, one-hour webinar tour and tutorial on the Calculator. View [...]
Zyla shares his expertise on option pricing
Don’t forget to register for the “Advanced Workshop on Option Pricing Modeling” taking place Thursday, February 24. Featuring Mark Zyla, this intensive four hour workshop will include case studies and hands-on examples on applications such as: Employee stock option analysis Intangible asset analysis Discounts for lack of marketability Contingent considerations As this critical valuation technique [...]
Zyla’s step-by-step approach to goodwill impairment testing under FASB ASC 350
Take note of this great post on the CPA Insider from the AICPA. In the article, Mark Zyla points out that consistency is the most important principle in Step 2 valuation analyses (conducted only when the first analysis concludes that the business unit’s fair value is less than its book value)–in most cases either of [...]
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