BV News and Trends November 2021
A monthly roundup of key developments of interest to business valuation experts.
ASA fair value virtual conference December 1
The American Society of Appraisers will hold its 2021 ASA Fair Value Virtual Conference on December 1 from 1:00 p.m. to 5:10 p.m. ET.
FASB updates Topic 805 on business combinations regarding deferred revenues
The Financial Accounting Standards Board (FASB) announced an update to its business combinations standard (Topic 805) aimed at clarifying how to apply requirements under its revenue recognition rule.
PCAOB 2020 inspection reports released
The Public Company Accounting Oversight Board (PCAOB) has issued its 2020 annual inspection reports for the largest U.S. audit firms, including each of the Big Four, BDO, and Grant Thornton.
Global BV News: Latest issue of OIV Journal available
The spring 2021 issue of the journal of the Organismo Italiano di Valutazione (OIV), the valuation standards-setter in Italy, contains the following articles.
Updated Data Help Appraisers With RULs of Intangible Assets
To estimate the expected remaining useful life (RUL) of an intangible asset, it can be helpful to see how other appraisers have assigned RULs to similar assets in the subject industry. Data on 18 identifiable intangible types (also broken down by industry) culled from almost 16,000 purchase price allocations (PPAs) have been assembled into the third edition of Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations.
BV News and Trends October 2021
A monthly roundup of key developments of interest to business valuation experts.
Option Price Modeling in Early Stage Valuation: Practical Insights
The category of early-stage companies includes startup companies, which have an initial concept, design, or business plan but, not an actual product, as well as multibillion-dollar companies with significant revenue and operations that have yet to reach profitability. The valuation of an early-stage enterprise (ESE) is based on a mix of quantitative analysis, people insight, and intuition for the company’s growth prospects. In spite of their diversity, ESEs have unique characteristics as a group that ...
Free model adjusts ROI distortion from missing intangibles
Intangible assets that are “missing” from corporate balance sheets (see prior coverage) distort performance metrics and generally overstates return on capital.
Business Valuation OIV Journal Spring 2021
Business Valuation OIV Journal has been created by Organismo Italiano di Valutazione (OIV), the Italian Valuation Standard Setter, to provide a forum for discussion and to foster cultural progress in the field of business valuation. In this issue, articles include "Cross-border DCF valuation in a nutshell"; "Level 3 reporting quality: trend analysis of derivative instruments’ restatements"; and "Business valuation and fundamental analysis."
BV News and Trends September 2021
A monthly roundup of key developments of interest to business valuation experts.
SEC Comment Letters Reveal COVID-19 Impacts—and Much More
How to benefit from the great deal of useful information about fair value measurement issues in comment letters the Securities and Exchange Commission (SEC) sends after it reviews public companies’ financial statements and disclosures.
New push to explore realignment of intangible asset disclosures
Long overdue is a re-examination of the reporting and disclosure framework for intangible assets (IA).
New course on intangibles debuts at the October ASA conference
A new advanced course on the valuation of intangible assets will make its debut at the ASA International Appraisers Conference in Las Vegas.
BVR releases updated data on identifiable intangibles
Data from almost 16,000 purchase price allocations (PPAs) are included in Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations, 3rd edition, which has just been released.
Cheng v. Coastal Lb Assocs.
This case concerned the purchase of minority interests in a California limited liability company under the Corporate Code concerning the purchase of these interests in lieu of a liquidation of the company. The appellate court affirmed the trial court’s order confirming the purchase of these interests at a discounted fair market value.
California Court of Appeal Allows a Discount for Lack of Control in the Buyout of 25% Interests in an LLC
This case concerned the purchase of minority interests in a California limited liability company under the Corporate Code concerning the purchase of these interests in lieu of a liquidation of the company. The appellate court affirmed the trial court’s order confirming the purchase of these interests at a discounted fair market value.
BV News and Trends August 2021
A monthly roundup of key developments of interest to business valuation experts.
Sneak preview of updated data on identifiable intangibles
Get an advance look at the new edition of a guide that analyzes data on the useful lives of intangible assets culled from over 15,000 purchase price allocations.
Pourmoradi v. Gabbai
This California appellate case reviewed the trial court’s decision that discounts for lack of control and lack of marketability were not appropriate in determining the value to be paid to the plaintiffs in this corporate dissolution case where the remaining 50% owners exercised their right to purchase the plaintiff’s 50% interest in the LLC.
California Appellate Court Remands for Application of Trial Court of Wrong Standard of Value Denying Discounts
This California appellate case reviewed the trial court’s decision that discounts for lack of control and lack of marketability were not appropriate in determining the value to be paid to the plaintiffs in this corporate dissolution case where the remaining 50% owners exercised their right to purchase the plaintiff’s 50% interest in the LLC.
Recap of recent BV cases of note
A number of recent cases have emerged that contain various valuation issues.
Global BV News and Trends July 2021
Business valuation news from a global perspective.
SEC comment letters uncover COVID-19 disclosures per PwC analysis
Valuable information can be gleaned about fair value measurement issues from comment letters the Securities and Exchange Commission (SEC) sends after it reviews public companies’ financial statements and disclosures.
Van Vleet comments on use of SEAM in Ryan case
BVWire recently reported on the Ryan Trust v. Ryan case, a buyout dispute in which the Nebraska Supreme Court affirmed the district court’s decision to credit the valuation testimony of the expert for the late majority shareholder.