BVU News and Trends October 2019
A monthly roundup of key developments of interest to business valuation experts.
Diverse feedback to FASB regarding goodwill amortization vs. impairment
The FASB received almost 100 comment letters on its Invitation to Comment (ITC) on how to account for certain identifiable intangible assets acquired in a business combination.
Deadline looms to share your views on goodwill amortization vs. impairment
Comments are due soon—October 7—on the FASB’s Invitation to Comment (ITC) on how to account for certain identifiable intangible assets acquired in a business combination.
Goodwill should not be a ‘wasting asset’
Goodwill has resurfaced as a valuation topic globally this year, so much so that the IVSC’s first article on the subject, ‘Is Goodwill a Wasting Asset?’ has been downloaded thousands of times already.
Possible Change to Goodwill Model Generates Buzz at ASA Fair Value Conference
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.
Global BV News: IVSC examines goodwill impairment vs. amortization
What are the potential consequences of a change from the current impairment model to goodwill amortization?
PwC explains FASB proposal to upend goodwill model
Should annual goodwill impairment tests be done away with for public companies?
BVU News and Trends September 2019
A monthly roundup of key developments of interest to business valuation experts.
FASB revisits goodwill impairment testing
The issue of annual impairment testing versus amortization of goodwill is being revisited with the Financial Accounting Standards Board (FASB) issuance of an Invitation to Comment (ITC) on how to account for certain identifiable intangible assets acquired in a business combination.
European goodwill impairment down 35% in 2017
Total goodwill impairment recorded by European-listed companies in the STOXX® Europe 600 dropped 35%, to €18.5 billion, in 2017, according to the ‘2018 European Goodwill Impairment Study,’ from Duff & Phelps.
University of Bath professors document problems with goodwill in purchase price allocations
Researchers from University of Bath, working in conjunction with a team at the University of Hong Kong, find that investors underreact to high goodwill-to-sales ratios.
BVU News and Trends February 2019
A monthly roundup of key developments of interest to business valuation experts.
Goodwill impairments up 23% in 2017
Total goodwill impairment rose to $35.1 billion in 2017, up 23% over the prior year, according to the “2018 U.S. Goodwill Impairment Study” by Duff & Phelps.
Verizon’s $4.6 billion impairment
What’s in a (brand) name?
Valuation Issues in the Coming Wave of Goodwill and Asset Impairments
Widespread stock price declines and recessionary conditions will significantly affect corporate valuation and financial reporting of goodwill and long-term assets. The S&P 500 index, which represents a broad cross-section of the economy, declined by about ...
Lost Profits or Market Value? Best Approach to Measure Goodwill Impairment
Court decides whether lost profits or market value is the most accurate measure of damages in this goodwill impairment case.
Bessemer Trust Company, N.A., v. Francis S. Branin, Jr.
Court decides whether lost profits or market value is the most accurate measure of damages in this goodwill impairment case.
Ongoing Goodwill Valuation and Impairment Testing Shields Professional From Liability for Misrepresentation or Fraud
One of the issues in this securities fraud class action was whether Acterna Corp.’s (Acterna’s) outside auditor, PricewaterhouseCoopers LLP (PwC), was liable for not accurately representing the value of Acterna’s goodwill under the Financial Accounting Standards Board's (FASB's) Financial Accounting Standards No. 142 (FAS 142) and because PwC knew, or should have known, that the goodwill was seriously impaired, but reported that it was not.
In re Acterna Corp. Securities Litigation
One of the issues in this securities fraud class action was whether Acterna Corp.’s (Acterna’s) outside auditor, PricewaterhouseCoopers LLP (PwC), was liable for not accurately representing the value of Acterna’s goodwill under the Financial Accounting St ...
The impact of goodwill impairment on public companies: the early adopters
In June 2001, the Financial Accounting Standards Board ("FASB") issued two new accounting statements: Statement of Financial Accounting Standards No. 141 regarding Business Combinations ("SFAS 141") a ...
Association for Corporate Growth provides market insights
Following are highlights of selected presentations at the Association for Corporate Growth meeting in Orlando, April 10-13, 2002. The next annual meeting will be April 30 to May 3, 2003 at the Del Cor ...