Valuation for Financial Reporting Fair Value, Business Combinations, Intangible Assets, Goodwill, and Impairment Analysis

by Mard, Michael J.; Hitchner, James R.; Hyden, Steven D.

• ISBN13: 9780470534892
• ISBN10: 0470534893
• Edition: 3rd
• Format: Hardcover
• Copyright: 2010-11-23
• Publisher: Wiley

Summary

Auditors and investors must know how to prepare and interpret transactions, provide fair value guidance, and use fair value measurements in an understandable and reliable manner. This book provides detailed coverage of the acquisition method, consideration transferred, various methods for identifying and valuing intangible assets, amortization of tax benefit, impairment of long-lived assets, and goodwill impairment for the reporting unit. It contains specific guidance for new requirements and includes supplemental checklists, worksheets, flowcharts, case studies, and implementation aids. Appraisers, managers, investors, and auditors will find essential valuation instruction here.

Author Biography

MICHAEL J. MARD, CPA/ABV, ASA, is author or coauthor of seven books, including Financial Valuation Workbook, Second Edition and Driving Your Company's Value, both published by Wiley, as well as books on SFASs 141, 142, and 157. He is President of The Financial Valuation Group of Florida, Inc., and has testified in court approximately 100 times.

JAMES R. HITCHNER, CPA/ABV, ASA, is author of Financial Valuation, Second Edition and coauthor of Financial Valuation Workbook, Second Edition, published by Wiley. He is Editor in Chief of Financial Valuation and Litigation Expert journal.

STEVEN D. HYDEN, CPA/ABV, ASA, is the coauthor of four books, including books on SFASs 141, 142, and 157.?He is Chief Operating Officer of The Financial Valuation Group of Florida, Inc., and has developed analyses that have been reviewed and accepted by the Securities and Exchange Commission, major accounting firms, the IRS, and the courts.

Table of Contents

Preface

Acknowledgments

About the Authors

Fair Value Measurements and Financial Reporting

Financial Reporting and the Current Environment

Fair Value Measurements

Mark to Market Accounting

Endnotes

Fair Value Flowchart

Business Combinations

Intangible Assets

Business Combinations

The Acquisition Method

Recognition and Measurement

Goodwill

Recording the Consideration Transferred

Disclosure

Endnotes

Business Combination Flowchart

Business Combination Overview

Intellectual Property

Case Study 1: Determining the Value of Goodwill and Other Intangible Assets in a Business Combination

Consideration and Calculation of the Total of Intangible Assets and Goodwill

Identifying Intangible Assets

Remaining Useful Life Analysis

Business Enterprise Analysis

Discounted Cash Flow Method

Discount Rate

Valuation of TANGIBLE Assets

Marketable Securities

Accounts Receivable

Inventory

Prepaid Expenses

Land and Building

Machinery and Equipment

Organization Cost and Existing Goodwill

Summary of Values

Valuation of Intangible Assets

Rates of Return

Acquired Software

Amortization Benefit

Assembled Workforce

Trade Name

Noncompete Agreement

Technology (Existing and In-process) and Customer Base

Valuation of Goodwill

Weighted Average Return on Assets

Disclosure

Endnotes

Noncontrolling Interests and Impairment

Noncontrolling Interests

Impairment

Endnotes

Case Study 2: Impairment Analysis

Valuation of Tangible Assets

Valuation of Intangible Assets

Conclusion

Endnotes

Implementation and Reference Aids

Business Valuation Reporting Standards

Reference Aids

Implementation Aids

Endnotes

Index

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