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 [...]
New update and free download on valuing goodwill
Thanks to a subscriber inquiry, we’ve just updated our ever-popular free download Goodwill Hunting in Divorce to reflect the current state of the law in Tennessee regarding the determination of the goodwill value of a professional practice. According to this one-of-a-kind, state-specific summary, at least 28 jurisdictions now clearly follow the current majority rule, which holds [...]
Brad Pursel responds to FASB’s new exposure draft relating to goodwill impairment testing
Last week FASB published an exposure draft related to goodwill impairment testing under ASC 350 that, if adopted, would result in the below changes to GAAP. The stated objective of the Exposure Draft is to reduce the cost and complexity faced by financial statement preparers related to complying with the Step One goodwill impairment test [...]
Despite non-compete, patient records are ‘professional goodwill’
BVWire’s recent report on McReath v. McReath (BVWire # 96-2) reported that the Wisconsin Court of Appeals may have just revised the majority rule on the disposition of private practice goodwill to say that all salable goodwill is a marital asset, subject to division, whether corporate or professional. Further, a non-competition agreement can serve as [...]
Non-compete vs. personal goodwill: whose asset is it anyway?
In 1980, Larry Howard, DDS, incorporated his practice, becoming the sole shareholder, officer, and director. He also entered a covenant not to compete (in effect, protecting his company from himself). Whatever his objective, when he retired in 2002 and sold his practice to another “corporate” dentist, the parties’ purchase agreement allocated nearly $550,000 to Dr. [...]
Agenda updated for BVR 3rd Annual Summit on Business Valuation in Divorce
The latest agenda is as follows–and you can register now here. Monday, September 13, 2010 8:00 a.m. – 8:30 a.m. Continental Breakfast 8:30 a.m. – 10:00 a.m. Divorce Testimony: Judges, Lawyers and Appraisers on the State of the Art Featuring: Jay Fishman (Financial Research Associates), William Morrison (Morrison & Company), Hon. Thomas Zampino (New Jersey [...]
Even this recession might not be enough to devalue a company
Experts can successfully argue that the process of business appraisal inherently includes a discount for the risk of economic turmoil. At least that’s what just happened in Mistretta v.Mistretta (Fla. App., Feb. 18, 2010), where the trial court valued the husband’s restaurant at $854,000, based on a valuation report prepared nearly a year earlier. [...]
Do you know what personal goodwill is? Does any one?
Goodwill hunting: new survey searches for standard definition “Many business valuations are influenced by goodwill, but amazingly, there is no standard, functional definition of personal goodwill,” says David Wood (Wood Valuation).To help correct the problem, Wood and BVR’s Adam Manson reviewed the leading business valuation textbooks, articles, and court cases. They assembled the definitions in [...]
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