Small audit firms continue to have trouble with fair value, impairment
Audit firms that handle 100 public companies or fewer are having trouble verifying fair value measurements and the impairment of intangible and long-lived assets, reveals a new report from the Public Company Accounting Oversight Board. Bookmark on DeliciousDigg this postRecommend on Facebookshare via RedditShare with StumblersTweet about itSubscribe to the comments on this post
New updates to complete guide on fair value measurements
The second edition of Fair Value Measurement: Practical Guidance and Implementation, by Mark Zyla (Acuitas), is now available from BVR. This comprehensive new update discusses the entire evolution of fair value accounting, including the impact of the recent economic crisis and the status of convergence with international standards. New and/or expanded chapters discuss: Bookmark on [...]
The valuation of an intangible asset depends upon how it is used
An article in IP Frontline admonishes that the value of an intangible asset should not be assessed in the abstract. It must be valued within the context of its use. Some of these factors include: Bookmark on DeliciousDigg this postRecommend on Facebookshare via RedditShare with StumblersTweet about itSubscribe to the comments on this post
With the PC business depressed, some intangible assets are taking significant balance sheet hits
With the lay and business press bemoaning the fall (in stock price and relevance) of Dell, Intel, HP and others in the PC business, IP Value Wire looked at the balance sheet of Acer Inc., which had acquired the Gateway and eMachines trademarks in 2007 and Packard Bell in 2008. Unfortunately, the PC malaise has [...]
Applying modern asset pricing theory to valuation of intangibles
In a presentation entitled Intangible Asset Valuation, Malcolm McLelland, PhD, begins with the premise that “there is no reliable way to estimate fair market-derived, risk-adjusted rates of return for non-traded assets and liabilities.” McLelland cogently argues for employing a combination of arbitrage and risk-neutral asset pricing theories to value intangibles. Bookmark on DeliciousDigg this postRecommend [...]
The purchase price allocation accounting for the assets in Avis’s acquisition of Zip Car will be interesting
According to its latest 10-Q, Zip Car had total assets of $429.6 million as of September 31 2012. Of that, $107.4 million is designated as goodwill and $3.6 million represents intangible assets remaining from various acquisitions (noncompete agreements, trade names, customer relationships, technology, etc.) Avis is paying approximately $500 million for Zip Car; there is an additional [...]
Damodaran on the ‘foolhardy versus rational’ value of goodwill
“There is no asset on a company’s balance sheet that wreaks more havoc on valuation and good sense than goodwill,” writes Prof. Aswath Damodaran (NYU Stern School of Business) in his blog. “The first problem with goodwill is that it sounds good, and when something sounds good, people feel the urge to pay for it. The second problem [...]
Using MPEEM to value the customer relationships intangible asset in business combinations
Yesterday hundreds of valuation analysts signed on to hear Thomas Zambito, ASA, Senior Vice President, BDO Valuation Advisors, LLC, and Poonam Vaidya, ASA, CBA, Crowe Horwath LLP, discuss best practices in valuing Customer Relationships in a business combination. Not surprisingly, when asked what valuation method was preferred, the audience voted overwhelmingly (84%) in favor of [...]
Determining the remaining useful lives of intangibles is a significant part of a valuation analysis
In an article in the September/October issue of Valuation Strategies, Robert Reilly of Willamette Management Associates in Chicago gave several reasons why analysts should not reflexively reject the cost approach to valuing intangibles. Regardless of approach used, Reilly outlines the significance and importance of the “lifing analysis” … determining the remaining useful lives (RULs) of [...]
Last chance to register for customer relationships CPE
Despite the crucial importance of customer relationships in an intangible asset valuation, there is wide divergence among appraisers in their measurement of attrition rates and contributory asset charges, among other factors. This Thursday, November 29, join Poonam Vaidya (Crowe Horwath) and Thomas Zambito (BDO Consulting) for “Valuing Customer Relationships,” which will cover all aspects of [...]
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