July
2009
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BY
Justin P. Ransome, Vinu Satchit
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Article
One purpose of fixing a value on an interest in a closely held business is to determine gift and estate tax liability. CPAs called upon to provide such valuations know that this can be a painstaking task. It is not an exact science but an educated estimate when, as often is the case, there is no identifiable market for the interest.
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May
2009
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Article
The current economic environment has presented unprecedented circumstances for members of the business valuation profession. Those who perform valuations for financial reporting are grappling with issues surrounding impairment, market capitalization versus fair value determinations, reasonable rates of return, and active versus distressed and inactive markets, to name a few.
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May
2009
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BY
Walter McNairy
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Article
Editor's note This is a sidebar to Valuations for Financial Reporting in Today's Market, May 09. Having never done a valuation, I have an alternative view from the valuation panel participants since I am from the audit and accounting side. I have been working with Dixon Hughes PLLC’s valuation group, which has brought a lot of questions to the forefront.
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May
2009
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Article
Editor's note This is a sidebar to Valuations for Financial Reporting in Today's Market, May 09. At its April 2 meeting, FASB voted to release three new pieces of guidance to address concerns over the application of fair value accounting standards in current market conditions. As a result, FASB said it would issue three related FSPs to clarify the guidance in FASB Statement no.
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May
2009
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Article
The JofA hosted a virtual roundtable discussion with valuation professionals from the financial reporting sector to gauge how they are handling critical valuation issues in today’s climate and what their outlook is for the near future. Excerpts from that discussion were published in the JofA’s May 2009 issue (see “Valuations for Financial Reporting in Today’s Market,” which also includes a brief biography of each panelist).
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May
2009
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Article
Editor's note This is a Webexclusive sidebar for Valuations for Financial Reporting in Today's Market, May 09. The following definitions from the International Glossary of Business Valuation Terms or Glossary of Additional Terms may help readers who are not active business valuation analysts. Standard of Value—the identification of the type of value being used in a specific engagement (for example, fair market value, fair value, investment value).
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January
2009
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Article
The Federal Accounting Standards Advisory Board (FASAB) is seeking comment on two exposure drafts, Social Insurance Accounting, Revised and Estimating the Historical Cost of General Property, Plant, and Equipment—Amending Statements of Federal Financial Accounting Standards 6 and 23. The Social Insurance proposal addresses challenges associated with incorporating estimates of future cash flows of massive federal programs such as Social Security and Medicare into financial statements.
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November
2008
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BY
Bryan M. Katz, Marc G. Olsen
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Article
In today’s increasingly technologydriven economy, CPAABVs face an arduous task in putting a price on technologybased intellectual property. Even with examples like Google’s search engine, Apple’s iPod, or Microsoft’s Windows platform, where established markets exist and discrete revenue streams can be tied to a specific technology, determining value apart from other intangible assets can prove extremely challenging.
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September
2008
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BY
Glenn S. Newman, Richard J. Gering and Jeffrey N. Press
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Article
EXECUTIVE SUMMARY In recent years, focus has shifted to the increased value of intangible assets. As such, competition, sometimes unlawful, has resulted in extensive litigation andor negotiation between parties for the use of intangibles. Methodologies to quantify a reasonable royalty are consistent with general valuation approaches–market (other licenses), income (profitability), and cost (design–around).
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March
2008
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BY
Keith Sellers, Yingping Huang, Brett A. King
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Article
EXECUTIVE SUMMARY Employee stock options (ESOs) more closely resemble warrants than traditional options in that they result in the issuance of additional shares of stock. Like warrants, ESOs impact stock values because they are dilutive. To determine the value of ESOs for a closely held company, first determine the fair value of common equity then allocate that value between the common stock and the ESOs .
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