Paper suggests key to improving fair value audits
Auditor experience—not guidance from regulators—will lead to higher audit quality of fair value measurements, according to a new paper, “Auditor Fair Value Expertise.”
Delaware Chancery explains logic behind use of market price in Aruba case
After the petitioners in a statutory appraisal action recently lost big, they undertook a multifaceted assault on the Delaware Court of Chancery’s decision to use the unaffected market price as the indicator of value. Their motion for reargument went nowhere.
Delaware Chancery defends use of market price, citing recent high court rulings
A few months ago, in a statutory appraisal case, the Delaware Court of Chancery made news when it used the unaffected market price as the indicator of fair value.
Work File Checklist for Attrition Rates for Customer Intangibles
Documentation requirements for fair value for financial reporting. This is based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles (CEIV) credential.
Growing Status of Fair Value Sparks Record Attendance at ASA FV Conference
The growing importance of fair value for financial reporting and the ongoing efforts to improve the quality in this area of practice triggered a sell-out for the ASA/USC 13th Annual Fair Value Conference held May 10 in Los Angeles. Here’s a recap.
Tips and Takeaways From the NYSSCPA BV Conference
BVU attended the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) on May 21 in New York City. As usual, it was an excellent conference, and here are a few takeaways from the sessions.
BVU News and Trends July 2018
A monthly roundup of key developments of interest to business valuation experts.
How to document the life for the projection period with respect to noncontractual customer-related intangible assets
Under the new requirements for fair value for financial reporting, valuation experts will be expected to have a certain amount of documentation in their work files. The new requirements are contained in the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles Valuation (CEIV) credential. Regardless of whether you hold the CEIV credential or not, anyone doing fair value for financial reporting should comply with these new rules.
BVLaw case update: buyout disputes
Even when the members of a business entity plan ahead for a potential buyout, a lot can still go wrong, often because the language in a controlling shareholder agreement leaves too much room for interpretation or a necessary corporate document is missing.
Why keep up with fair value if you don’t practice in it?
Talking with some attendees at the recent NYSSCPA conference in New York City, we were discussing M&A, and someone was asked whether he had read the exposure draft on valuing contingent consideration, a Valuation for Financial Reporting (VFR) advisory that The Appraisal Foundation (TAF) issued.
CEIV quality monitoring FAQs
The AICPA and the Royal Institution of Chartered Surveyors (RICS) have released a series of FAQs that detail the much-awaited Quality Monitoring Program for the Certified in Entity and Intangible Valuations (CEIV) credential.
Appraisal rights in M&A
In a recent presentation by attorneys from Cadwalader, it’s clear that appraisal rights continue to be an important topic in the M&A world.
Athlon Sports Communications, Inc. v. Duggan (II)
Court overrules precedent requiring exclusive use of Delaware block method to determine fair value in dissenting shareholder cases; trial courts may use other, more “modern” methods, including forward-looking DCF analysis, state high court says and remands for reevaluation of earlier ruling.
Delaware Block Method No Longer Mandatory in Tennessee Fair Value Proceedings
Court overrules precedent requiring exclusive use of Delaware block method to determine fair value in dissenting shareholder cases; trial courts may use other, more “modern” methods, including forward-looking DCF analysis, state high court says and remands for reevaluation of earlier ruling.
Tips and takeaways from the NYSSCPA BV event
BVWire attended the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) on May 21 in New York City.
Work File Checklist for Life for the Projection Period of Customer Intangibles
Documentation requirements for fair value for financial reporting. This is based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles (CEIV) credential.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
Three different court rulings on the use of discounts in the divorce context
Case law matters. Every month, BVLaw analyzes the most noteworthy court decisions dealing with valuation and damages issues. Subscribers should check out digests of three recent divorce rulings different state courts issued. All the cases dealt with the issue of whether it was appropriate to discount the owner-spouse’s interest in a closely held business.
AICPA releases draft of PE/VC guide
After several years in the works, the AICPA has issued a draft “Accounting and Valuation Guide” that provides “nonauthoritative guidance” for valuing private equity and venture capital investments.
Help needed with some academic research
Researchers at the University of Wisconsin School of Business are conducting a survey, “Valuation Practitioners’ Opinions About Various Professional Topics,” as part of their ongoing study of fair value.
Conference season is upon us: Key takeaways from the ASA/USC Fair Value Conference in Los Angeles
The growing importance of fair value for financial reporting and the ongoing efforts to improve the quality in this area triggered a sell-out for the live ASA/USC 13th Annual Fair Value Conference. For those not able to attend in person or tune into the webcast, BVR’s own executive editor, Andy Dzamba, was there and shares his key takeaways from the event.
Verition Partners Master Fund Ltd. v. Aruba Networks, Inc. (Aruba II)
Court of Chancery denies petitioners’ motion for reargument, finding that, in light of high court’s Dell and DFC decisions, the decision to use the unaffected market price as the fair value indicator was not so “ridiculous” or “absurd” as to indicate the Court of Chancery misapprehended the law.
Chancery Defends Use of Market Price Citing Recent High Court Rulings
Court of Chancery denies petitioners’ motion for reargument, finding that, in light of high court’s Dell and DFC decisions, the decision to use the unaffected market price as the fair value indicator was not so “ridiculous” or “absurd” as to indicate the Court of Chancery misapprehended the law.
Sold-out ASA event underscores importance of fair value
The growing importance of fair value for financial reporting and the ongoing efforts to improve the quality in this area of practice triggered a sell-out for the ASA/USC 13th Annual Fair Value Conference held May 10 in Los Angeles.
Letter to the Editor of BVWire re: control premiums
Your recent announcement about the 13th Annual Fair Value Conference in Los Angeles may leave unwary readers with the impression that the MPAP guidance on control premiums in VFR #3 applies to all business valuation work.