Tune in today for the ASA Virtual Fair Value Conference
Leading-edge topics and nationally recognized speakers highlight the American Society of Appraisers Virtual Fair Value Conference being held today November 18.
FASB probes fair value of restricted equity securities
The FASB has a project in initial deliberations, titled Effect of Underwriter Restrictions on Fair Value Measurements.
AICPA proposes new standard on financial instrument valuation
The AICPA’s Auditing Standards Board (ASB) has proposed a standard designed to provide practitioners with more guidance on auditing management’s estimates of the fair value of financial instruments, including on the use of pricing services.
AICPA addresses fair value of digital assets
The AICPA has added 13 questions and answers to its practice aid, Accounting for and Auditing of Digital Assets.
Case Studies in Contingent Consideration
A significant component of the transaction price in an M&A or buyout transaction often consists of proceeds that are “contingent” upon the target company’s achievement of certain performance targets after the closing has taken place. From the perspective of the seller, “contingent consideration” represents the right to receive additional assets or equity interests from the buyer (earnout), or the obligation to return part of the proceeds from the transactions (clawback) if specified future events occur ...
FASB seeks to simplify fair value for private-company shares
The Financial Accounting Standards Board (FASB) has issued a proposal drafted by the Private Company Council (PPP) that would simplify how private companies determine the fair value of the shares underlying a share-option award on its grant date or modification date.
Valuers Stand Ground in Clash Over Purchase Price in SPAC Merger
A recent SPAC merger triggered a strong disagreement between a national valuation firm and the merged entity over the fair value of equity consideration issued for the target company. A special purpose acquisition company (SPAC) is a shell company that raises capital in an IPO and then acquires an operating company to form a new merged entity.
The SEC’s Not-So-Gentle Reminder: Show Your Work
A recent SEC comment letter to a company about its determination that no impairment of goodwill and intangible assets was needed, the agency sounded much like every math teacher we’ve all very likely encountered: Show your work!
Valuation of Inventory: Taking Stock of the Guidance
Given divergences in both practice and guidance, inventory valuation can seem challenging. In this webinar, Anthony Pumphrey will illustrate simple, straightforward modifications to the valuation of inventory that you can incorporate into your valuation process. Review what comprises the book value of inventory and valuation guidance from the FASB, the IRS, and the AICPA. Next, walk through an example valuation of raw materials, work-in-progress, and finished goods in accordance with this guidance. The example provided ...
Advising clients on the meaning of ‘fair value’
The phrase ‘fair value’ continues to bedevil the high courts and create very different expectations when parties are forced to figure out what to pay when buying and selling.
IVSC interviews head of European Financial Reporting Advisory Group
‘The valuation profession has always played an important role in the financial reporting process.'
Fair Value Measurements Amid the Covid-19 Crisis
Reporting entities in recent years generally benefited from a growing economy, which may have allowed auditors to gain comfort with fair value measurements for financial reporting purposes with relatively less documentation. The disruption to global economic activity and financial markets suggest that a business as usual approach may no longer apply to these same fair value measurements. Consequently, reporting entities can expect fair value measurements to receive greater scrutiny from their auditors and a heighted ...
ASA comments on SEC’s proposed rule on fair value
In a letter to the SEC, the American Society of Appraisers (ASA) voiced its general support for a proposed rule that harmonizes existing fund valuation guidance and clarifies what is expected from boards and advisors when a market quotation is not readily available.
Early Stage Valuation: A Fair Value Perspective
June 2020 978-1-119-61363-3 Hardcover
Antonella Puca
John Wiley & Sons, Inc.
Latest SEC comment letter trends in PwC analysis
Valuable information can be gleaned about fair value measurement issues from comment letters the SEC sends after it reviews public companies’ financial statements and disclosures.
ASA Fair Value Virtual Conference airs live June 18
Any practitioner involved in fair value should tune in to the first-ever ASA Fair Value Virtual Conference tomorrow, June 18.
Third IVSC goodwill paper looks to step up ‘headroom’ alternatives to amortisation
The IVSC have published ‘Opportunities for Enhancing the Goodwill Impairment Framework,’ the third and final paper in its series looking at the IASB proposal to revert to goodwill amortisation.
Volatility Adjustments for Industry, Size and Leverage
How well do you understand the theory and application of industry, size, and leverage adjustments for estimating equity volatility? Do you feel confident explaining it to a new analyst? A client? A judge? It may be time to get more confident. Join James Herr for a discussion of the basic concepts around applying volatility estimates in valuation, covering common pitfalls when calculating the basic volatility measure. Learn the differences between equity and asset volatilities, and ...
Houlihan Lokey notes increase in ‘affiliate transactions’ leading to current demand for fairness opinions
Some investment fund sponsors are now holding damaged assets in many of their late-state funds.
Latest Update on Proposal to Upend Goodwill Accounting
Goodwill remains a very important valuation topic globally this year, and Business Valuation Update continues to cover the responses to initial efforts in the consideration of whether to upend the current goodwill impairment model and revert back to one of amortization of the world’s goodwill assets.
The Impact of COVID-19 on Restructuring, Insolvency & Impairment
The world of valuation has changed along with everything else. In this panel on the Impact of COVID-19 on Restructuring, Insolvency & Impairment, three experts will discuss the changing environment for valuation assignments. Craig Jacobson, Richard Peil, and Dan Korcyk each bring a unique perspective and will discuss three specific areas where valuation activity might increase due to the virtual shutdown of the U.S. economy. Finally, we will discuss topics related to performing valuations in ...
SEC proposes a framework for fund valuation practices
The SEC has issued a proposed rule, Good Faith Determinations of Fair Value, that would “establish requirements for determining the fair value in good faith of a fund’s investments and would permit boards to assign the determination to the fund’s investment adviser, subject to board oversight and certain other conditions.”
Goodwill Amortization Controversy and CEIV Highlight Fair Value in 2020
Mark Zyla (Zyla Valuation Advisors) gives some highlights of what’s on the front burner for fair value in 2020, including issues surrounding the FASB’s invitation to comment on the impairment of goodwill, an important update to the Certified in Entity and Intangibles Valuation (CEIV) credential, the increasing globalization of the profession, and upcoming guidance.
Two valuable free video resources available for BVWire—UK readers
Michael Badham, executive director of the International Institute for Business Valuation (iiBV) alerted BVWire—UK that their panel discussion on valuing financial instruments has become their single most popular program, reaching 10,000 views last week.
Exposure draft on valuing inventory open for comments through 30 April
The IVS 230 Inventories Exposure Draft was issued last week and is now in consultation for two months until 30 April.