BV News and Trends December 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends October 2022
A monthly roundup of key developments of interest to business valuation experts.
Goodwill impairments YTD 2022 are up, per Kroll analysis
Risky financial markets and an uncertain economic environment add up to increased goodwill impairments.
Recap of the ASA New York Fair Value Conference
Important takeaways from the recent conference on these topics: global cost of capital, ASC 718 valuations, ESG impacts on value, discount rate for intangibles, hard-to-value securities, SPAC warrants, and more.
BV News and Trends September 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends August 2022
A monthly roundup of key developments of interest to business valuation experts.
Do fair value audit woes impact M&A?
A new study suggests that firms avoid obtaining intangibles via acquisition because they don’t want to face scrutiny from the PCAOB over impairment matters.
Secret witnesses may appear in overvaluation case
In a New Jersey class action, plaintiff shareholders of publicly held Ascena Retail Group alleged that the company misrepresented the value of its goodwill and trade names to inflate the stock price artificially.
BV News and Trends June 2022
A monthly roundup of key developments of interest to business valuation experts.
Takeaways from the ASA Fair Value Conference
The 2022 ASA NY Fair Value Conference was held in hybrid form (online and in-person from Hoboken, N.J.) on June 16.
In re Ascena Retail Grp., Inc. Sec. Litig.
In this securities putative class action litigation, plaintiff shareholders alleged that the defendants (Ascena) misrepresented the value of Ascena’s goodwill and trade names in order to inflate Ascena’s stock price artificially. In June 2017, Ascena announced an impairment charge to those assets of $1.3 billion “causing Ascena's already-declining share price to fall precipitously. Ascena ultimately declared Chapter 11 bankruptcy in July 2020.” The defendants moved to dismiss for failure to plead material misrepresentation or scienter or both. The court granted the motion to dismiss but allowed the plaintiffs to amend their complaint.
New Jersey U.S. District Court Dismisses Plaintiffs’ Complaint That Public Company Defendant Overvalued Its Goodwill
In this securities putative class action litigation, plaintiff shareholders alleged that the defendants (Ascena) misrepresented the value of Ascena’s goodwill and trade names in order to inflate Ascena’s stock price artificially. In June 2017, Ascena announced an impairment charge to those assets of $1.3 billion “causing Ascena's already-declining share price to fall precipitously. Ascena ultimately declared Chapter 11 bankruptcy in July 2020.” The defendants moved to dismiss for failure to plead material misrepresentation or scienter or both. The court granted the motion to dismiss but allowed the plaintiffs to amend their complaint.
FASB hits ‘pause’ on goodwill project
The big news at the 2022 ASA NY Fair Value Conference last week was that the FASB has dropped its project on goodwill, but it could be revisited in the future.
BV News and Trends May 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends May 2022
Business valuation news from a global perspective.
Global BV News and Trends April 2022
Business valuation news from a global perspective.
Goodwill impairments in U.S. doubled in 2020: Kroll study
Total goodwill impairment in U.S. public companies was $142.5 billion in 2020, more than double the $71 billion recorded in 2019, according to the “2021 U.S. Goodwill Impairment Study” by Kroll.
BV News and Trends March 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends March 2022
Business valuation news from a global perspective.
Deloitte replaces pub on impairments and disposals
Deloitte has published A Roadmap to Impairments and Disposals of Long-Lived Assets and Discontinued Operations, which includes its insights into the guidance in ASC 360-101 and ASC 205-20 on impairments and disposals of long-lived assets and presentation of discontinued operations.
Two cases on trapped-in gains tax—with opposite outcomes
In a California divorce case we recently covered, an appeals court disallowed a discount for possible future taxes because the taxes were neither immediate nor specific.
BV News and Trends February 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends February 2022
Business valuation news from a global perspective.
Global BV News: European goodwill impairment up 49% in 2020
Total goodwill impairment recorded by European-listed companies in the STOXX® Europe 600 increased for the third consecutive year, rising 49%, to €54.1 billion (bn) in 2020, according to the “2021 European Goodwill Impairment Study,” from Kroll.
Intangibles, ESG, and digital assets are on the FASB’s new research agenda
In response to feedback received in an agenda consultation, the Financial Accounting Standards Board (FASB) announced that its research agenda now will include the following projects.
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