Unless there’s strong opposition, it appears likely that the FASB will ease the rules that currently require public companies to test annually for goodwill impairment, a process that has become so complex that the costs may be outweighing the benefits.
Business Valuation Update attended the recent RICS Business Valuation Symposium in New York City, during which speakers gave an overview of developments in fair value for financial reporting. One session presented a timeline that strikingly illustrates the remarkable advances the profession has made in this area of practice.
The Public Company Accounting Oversight Board has issued four documents that provide guidance on the new requirements for auditing accounting estimates and the auditor’s use of a specialist, which includes valuation experts.
Upwards of 150 individuals have earned the Certified in Entity and Intangible Valuations (CEIV) credential so far, but many more individuals have either enrolled in the program (630 actual enrollees but up to an estimated 800 individuals) or have inquired but not yet enrolled (three to 500 individuals), according to speakers at the recent ASA/USC 14th Annual Fair Value Conference in Los Angeles.
There may be a revision to the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangible Valuations (CEIV), according to Tony Aaron, who is retired from Ernst & Young and is now an adjunct professor at the USC Leventhal School of Accounting.
The underlying assets that make up a business have a finite life, and knowing the rate at which their values decline is a critical skill for determining useful lives under ASC and other appraisal standards. To make this determination, a valuation professional needs knowledge of the underlying value drivers, but they also need a practical understanding of the tools and methods used to assess their values. Join expert Ray Rath for this in-depth session on ...
Over half (55%) of CPAs at companies with complex financial instruments on their books say they are concerned about the valuation of derivatives, according to the AICPA’s “Economic Outlook Survey” for the second quarter of 2019.
The U.S. Securities & Exchange Commission (SEC) has approved proposed rules by the Public Company Accounting Oversight Board (PCAOB) to revise auditing standards that increase oversight of specialists employed by accounting firms.
Last month, at the RICS Business Valuation Symposium in New York City, it was evident that, in the realm of fair value for financial reporting, extraordinary progress has been made in the efforts to enhance the public trust in valuations.
The size premium, globalization, fund valuations, CEIV status, valuing debt, recent inventory guidance, and a new regulatory crackdown highlighted the recent American Society of Appraisers (ASA) Fair Value Conference, which turned out to be an outstanding event.
A pending FASB Request for Comment pertaining to ASC 350 and 805 may impact the demand for valuation services related to financial reporting.
In the realm of fair value for financial reporting, extraordinary progress has been made in the efforts to enhance the public trust in valuations.
When the SEC reviews financial statements and disclosures of public firms, it may send a comment letter to the company if it has questions or sees problems.
Last year’s event was sold out for in-person attendance, so you may want to register now for the ASA/USC 14th Annual Fair Value Conference at KPMG in Los Angeles on June 20.
Get an update on the guidance to fair value measurement under ASC 820 as applicable to the valuation of software companies, based on the guidance in the AICPA Guide on the Valuation of Portfolio Investments of Venture Capital and Private Equity Funds and Other Investment Companies and other best practices. Join Antonella Puca, Andreas Dal Santo, and Adam Kindreich for an overview of the valuation methodologies that are suitable for the valuation of software companies ...
The PCAOB continues to find “frequent deficiencies in auditing unobservable inputs used to measure the fair value of certain financial instruments,” according to a staff preview of 2018 inspection observations.
The American Institute of CPAs has issued a white paper that explains the new Certified in the Valuation of Financial Instruments (CVFI) credential.
An excellent program was presented to an eager crowd at the American Society of Appraisers (ASA) Fair Value Conference in New York City April 30.
First announced in 2017 (see our coverage), the American Institute of CPAs has launched its new credential, the Certified in the Valuation of Financial Instruments (CVFI), with an accompanying performance framework.
Nationally recognized speakers and timely topics will be featured at the 2019 ASA Fair Value Conference in New York City April 30.
Valuing common stock in an early-stage company that has completed a Series A preferred stock financing can be challenging. According to the AICPA’s “cheap stock” practice aid, many of the conventional valuation techniques, such as the discounted cash flow method and the guideline public company method, are not applicable for early-stage companies. Instead, appraisers are advised to use the option-pricing method to backsolve to the Series A value. That calculation requires an in-depth understanding of ...
Based on new draft guidelines, a review of how a calibration model can be established based on the initial transaction price of an investment in an early-stage enterprise. Also discussed is how such a model could be used in subsequent measurement periods to estimate the fair value of the enterprise and of equity interests in a portfolio company.
The Appraisal Foundation (TAF) has issued a Valuation in Financial Reporting (VFR) advisory on valuing contingent consideration, also known as earnouts.
Join Antonella Puca and Andreas Dal Santo for an update on the guidance to fair value measurement under ASC 820 as applicable to private debt investments, based on the guidance in the AICPA Guide on the Valuation of Portfolio Investments of Venture Capital and Private Equity Funds and Other Investment Companies, and Other Best Practices. Learn about the valuation methodologies that are suitable for private debt investments, and hear the key provisions of the guide ...