Valuing customer relations–new thoughts on a complicated intangible
One thing that’s pretty clear–the market approach is unlikely to work when valuing customer relationships. Even ASC 805-20-55-31 is pretty clear that “the market approach is generally not applicable.” So, the assumption is that the SEC, at least, expects the income approach-even though they say that other approaches should be considered if they provide [...]
Google’s transfer of intangibles draws IRS attention
Bloomberg reports the IRS is auditing how Google Inc. avoided federal income taxes by shifting profit into offshore subsidiaries, including how the company valued software rights and other intellectual property it licensed abroad. Transfers of intangibles to offshore subsidiaries located in lesser-taxed areas can allow for huge tax savings. Google, for example, is estimated to [...]
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 adds new initiative on impairment of intangibles
After the FASB received feedback on its proposed standards for testing goodwill impairment project, it added a new project on the impairment of intangible assets with indefinite lives, reports Michael Conn in Accounting Today. “The new project’s scope is to simplify the manner in which an entity tests other indefinite-lived intangible assets for impairment,” Conn reports. The FASB [...]
Fine-tune your intangible asset value analyses
On September 20th Mary Adams (I-Capital Advisors) will lead the BVR webinar “Analysis of the Intangible Drivers of Company Value.” In this 75-minute program, Adams will cover what every business valuation analyst needs to know in our increasingly knowledge-based economy.
Intangibles are cool, but don’t forget revenue growth and potential earnings, Damodaran repeats…
In his recent blog post, “From revenues to earnings: Operating, financing and capital expenses,” Aswath Damodaran (Stern School of Business, NYU) opines about the accounting issues in Groupon’s recent S-1 statement such as R&D and customer acquisition costs. “I do know that there are valuation questions that will come up with the IPO, but talking about [...]
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 [...]
ASA now offers a designation in intangible asset valuation
The ASA is now offering a new designation in intangible asset valuation. The association cites the following reasons for developing the new designation: The increasing importance of intangible assets to business strategies and profitability, expanded financial reporting requirements regarding intangible assets Increased review of intangible asset valuations by regulatory groups including the Securities and Exchange [...]
Multiple valuation methods are more important than ever for early stage IP engagements
At AUTM, Ken Levin, from the Department of Veterans Affairs, moderated a discussion on valuation and what industry thinks of the valuations Technology Transfer Officers put on their IP properties. His advise to these IP managers should be regarded seriously by any appraiser doing IP valuations work. Mr. Levin would have done Socrates proud, leading a [...]
The newest market data resource: eBay??
Forget Pratt’s Stats. Forget the IBA database. Forget RoyaltySource. Now there’s a new way to find out what intellectual property is worth! Traffic Sports USA, the Miami-based extension of Traffic Group, a Brazilian company, announced last week that had acquired the rights to the Carolina RailHawks brand. The RailHawks are a professional soccer [...]
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