BVU News and Trends December 2019
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends December 2019
Business valuation news from a global perspective.
Global BV News: CBV Institute releases exciting research on cryptoassets
One of the highlights of the ICVPME 11th International Conference in New Zealand was a session, “Decrypting Crypto,” presented by Tara Singh and Tylar St. John of the CBV Institute, a Canadian valuation professional organization (VPO).
Global intangibles lost 8% in value this year
Business valuers recognise that intangibles present individual ‘facts and circumstances’ challenges.
Finishing touch put on the CEIV credential program
The Quality Monitoring (QM) program for the Certified in Entity and Intangible Valuations (CEIV) credential has been finalized.
Goodwill impairments up a whopping 125% in 2018: D&P study
Total goodwill impairment soared to $78.9 billion in 2018, up 125% over the prior year, according to the “2019 U.S. Goodwill Impairment Study” by Duff & Phelps.
Royalty Rates and How to Use Them in the Relief from Royalty Method
While multiple sources of royalty rates exist, do you know how to find, select and ultimately use the appropriate data for valuation assessment? Despite its utility, the Relief from Royalty method remains a misunderstood and often misused appraisal technique. Though recent intellectual property court battles have brought prominence to the method and its constituent inputs, with primary focus on Royalty Rates, the underlying confusion generated when putting it to use remains. In this presentation, expert ...
Valuers stress concerns about goodwill impairment vs. amortization
The last issue of BVWire covered the morning session of the full-day roundtable discussion at FASB headquarters on the standard-setter’s Invitation to Comment (ITC) on moving from the current impairment model for goodwill to one of amortization or a hybrid approach.
Intangibles often require their own discount rates to derive WACC, Shaw and Higgs report
Since there are very few comparable statistics, analysts often need to assemble their own matrix of required asset return rates for enterprises with intangibles, Steve Shaw (Financial Seminars) told attendees at last month’s ICAEW Valuation Community Annual Conference in London.
Valuing Intangible Assets under the Mandatory Performance Framework: A Fair Value Update
Intangible assets represent an increasingly relevant component of an entity’s value. However, the value of intangible assets is typically not measured on corporate financial statements unless in a business combination under both generally accepted accounting principles (GAAP) in the United States and International Financial Reporting Standards (IFRS) internationally.
Global BVU News and Trends November 2019
Business valuation news from a global perspective.
Application of the Cost Approach to Valuing Identifiable Intangible Assets
Join Robert Reilly and Nathan Novak for this engaging webinar on the common types of intangible assets, the most common reasons to value intangible assets, and the generally accepted intangible asset valuation approaches.With a focus on the cost approach methods to value intangible assets, particularly contributory intangible assets, this program will describe the specific procedures for quantifying each of the intangible asset cost component and for identifying and measuring each of the intangible asset obsolescence ...
FASB absorbs feedback on goodwill impairment vs. amortization
A mix of stakeholders participated in a full-day roundtable discussion at FASB headquarters in Norwalk, Conn., on November 15.
Global BV News: IASB also eyes reintroduction of goodwill amortization
As the FASB is doing in the U.S., the International Accounting Standards Board is also exploring whether to reintroduce goodwill amortization.
BVWire will attend November 15 FASB roundtable on goodwill amortization vs. impairment
The FASB will conduct a public roundtable discussion on November 15 in Norwalk, Conn., on its Invitation to Comment (ITC) on moving from the current impairment model for goodwill to amortization.
Understanding Tax Amortization Benefit Considerations and the International Impact
When valuing a foreign target company in the context of a purchase price allocation, the local tax rules within the company’s jurisdiction often go unnoticed, but they should be considered and applied pursuant to the acquisition structure.
BVU News and Trends October 2019
A monthly roundup of key developments of interest to business valuation experts.
The IP in IPO: IP Valuation Lessons from Recent Public Exits
The year 2019 is shaping up to be a record year for IPOs: from iconic brands, such as Levi Strauss, to technology disruptors, such as Lyft and Pinterest, billions of dollars in valuations have been realized through public exits, providing hefty returns to investors and shareholders. When it comes to understanding what triggers the enormous valuations of some of these companies (commonly known as “unicorns”—a private startup with a valuation in excess of $1 billion ...
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.
Valuation trends and issues in the information/media sector
Separately identifiable intangibles are making up a bigger portion of the purchase price allocations for the big deals in the media sector, though practices vary widely, reports Grant Thornton in their new ‘What’s Been Happening in Media M&A’ white paper.
UK perspectives on OECD’s upcoming transfer pricing harmonisation efforts
‘Some jurisdictions have acted unilaterally, some have made failed attempts, while some have adopted a “wait and see” approach,’ the current issue of Bloomberg BNA’s Transfer Pricing Forum says.
Global BV News: ‘Quite a ride’ ahead for global transfer pricing
In the latest issue of Bloomberg BNA’s Transfer Pricing Forum, international transfer pricing practitioners provide their insight on how the tax authorities, as well as multinationals in their jurisdictions, are preparing for the anticipated Organization for Economic Co-operation and Development (OECD) harmonized global approach to the digitalization of the economy.
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?