Valuation for Financial Reporting: Intangible Assets, Goodwill, and Impairment Analysis, SFAS 141 & 142 [Hardcover]

Michael J. Mard (Author), James R. Hitchner (Author), Steven D. Hyden (Author), Mark L. Zyla (Author)

Book Description

Publication Date: May 24, 2002 | ISBN-10: 0471237531 | ISBN-13: 978-0471237532 | Edition: 1

Valuation for Financial Reporting: Intangible Assets, Goodwill, and Impairment Analysis provides guidance and insight in the identification and measurement of intangible assets and goodwill pursuant to the Financial Accounting Standards Board Statements of Financial Accounting Standards (SFAS) No. 141, Business Combinations and (SFAS) No. 142 Goodwill and Other Intangible Assets.

The new rules are sweeping and complex. Valuation for Financial Reporting will bring clarity to CFOs, auditors, valuation professionals, and CPAs by explaining the valuation aspects of the new financial reporting requirements, including how to identify the characteristics of goodwill and intangible assets, determine if impairment has occurred, and employ specific methods to assess the financial impact of such impairment.

While numerous articles and commentaries on the subject have appeared dating back to the time the FASB began considering the issue, Valuation for Financial Reporting is the first to provide "real world" examples of the valuation techniques and methodologies required to perform a purchase price allocation under SFAS No. 141 and an impairment study under SFAS No. 142. Valuation for Financial Reporting will help lift the veil of mystery surrounding these two important pronouncements and provide a practical guide for their implementation.

This book:
* Shows the CPA and client how to apply the new SFAS 141 rules that pertain to all companies involved in an acquisition (buyer or seller) by analyzing and valuing the tangible and intangible assets acquired.
* Teaches the CPA and client how to apply the new SFAS 142 rules that pertain to all companies that recognize and measure intangible assets and goodwill which may now be impaired
* Presents detailed case studies and examples on how to apply and implement SFAS 141 and SFAS 142
* Provides a "How To" on the identification and measurement of intangible assets.
* Includes a checklist for controlling the gathering of data necessary for the analyses and another checklist guiding the work program for methodologies
* Offers guidance and examples for financial reporting purposes.

Editorial Reviews

From the Inside Flap

Valuation for Financial Reporting provides guidance and insight to practitioners, auditors, and their clients on two significant statements issued by the Financial Accounting Standards Board (FASB) in 2001: SFAS No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets. Written by four business valuation experts, two of whom advised the FASB on developing the new regulations, this book provides financial executives, CPAs, and valuation practitioners with everything they need to know to ensure full compliance with the standards.

The rules are sweeping and complex. Valuation for Financial Reporting explains the valuation implications of the financial reporting requirements, including how to identify the characteristics of goodwill and intangible assets, determine if impairment has occurred, and employ specific methods to assess the financial statement impact of such impairment. This must-have guide also:
* Distinguishes fair value from fair market value
* Includes examples of disclosure in audited financial statements
* Discusses best practices for the valuation of in-process research and development
* Includes detailed examples of valuations performed under SFAS Nos. 141 and 142
* Emphasizes the importance of fair value work papers as part of the audit file

While numerous articles and commentaries on the subject have appeared since the FASB initially began considering the issues, Valuation for Financial Reporting is the first publication to provide "real world" examples of the valuation techniques and methodologies required to perform a purchase price allocation under SFAS No. 141 and an impairment study under SFAS No. 142. Valuation for Financial Reporting helps lift the veil of mystery surrounding these two important pronouncements and provides a practical guide for their implementation.

From the Back Cover

Essential guidelines for the implementation of SFAS No. 141 and SFAS No. 142 for financial executives, CPAs, and valuation practitioners

Valuation for Financial Reporting: Intangible Assets, Goodwill, and Impairment Analysis provides guidance and insight in the identification, measurement, and management of intangible assets and goodwill pursuant to the Financial Accounting Standards Board Statements of Financial Accounting Standards (SFAS) No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets. This essential guide:
* Shows practitioners and clients how to apply the SFAS No. 141 rules for valuing and recording the assets acquired
* Teaches practitioners and clients how to apply the SFAS No. 142 rules for measuring subsequent goodwill impairment
* Presents detailed case studies and examples of applying and implementing SFAS Nos. 141 and 142
* Provides "How To" guidance for the identification, measurement, and management of intangible assets
* Includes checklists for controlling the gathering of data necessary for the analyses and for guiding the valuation work program
* Offers guidance for and examples of financial reporting disclosures

Valuation for Financial Reporting proves a one-stop, must-have guide for CPAs and valuation practitioners with clients who need to comply with SFAS Nos. 141 and 142.

See all Editorial Reviews

Product Details

• Hardcover: 160 pages
• Publisher: Wiley; 1 edition (May 24, 2002)
• Language: English
• ISBN-10: 0471237531
• ISBN-13: 978-0471237532
• Product Dimensions: 9 x 5.9 x 1 inches
• Shipping Weight: 15.2 ounces
• Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #1,769,541 in Books (See Top 100 in Books)

More About the Author

Mark L. Zyla is a Managing Director of Acuitas, Inc. an Atlanta Georgia based valuation and litigation consultancy firm. Mark has provided valuation consulting for various types of entities for the purposes of mergers and acquisitions, financial reporting, tax planning, corporate recapitalizations, as well valuing various types of intellectual property and other intangible assets for many purposes. Prior to joining Acuitas, he was formerly a practice leader for PricewaterhouseCoopers's Corporate Finance Consulting Group for the Southeastern U.S.

Mark received a BBA degree in Finance from the University of Texas at Austin and an MBA degree with a concentration in Finance from Georgia State University. Mark also completed the Mergers and Acquisitions Program at the Aresty Institute of The Wharton School of the University of Pennsylvania and the Valuation Program at the Graduate School of Business at Harvard University.

He is a Certified Public Accountant, Accredited in Business Valuation ("CPA/ABV"), Certified in Financial Forensics ("CFF") by the AICPA, a Chartered Financial Analyst ("CFA"), and an Accredited Senior Appraiser with the American Society of Appraisers certified in Business Valuation ("ASA").

Mark is a member of the American Society of Appraisers ("ASA"), the American Institute of Certified Public Accountants ("AICPA"), CFA Institute, and the CFA Society of Atlanta. Mark is a former member of the Business Valuations Committee of the AICPA, and a former Chairman of the ABV Examination Committee of the AICPA. He is also a former member of the Business Valuation Standards Subcommittee of the ASA. He was named as Vice Chairman of The Appraisal Foundation's Business Valuation Best Practices Working Group and to the AICPA's Fair Value Resource Panel. He is also a member of the Atlanta Venture Forum, a professional organization of the venture capital community. He is one of the authors of the International Glossary of Business Valuation Terms which has been adopted by the major valuation organizations.

Mark is a frequent presenter and author on valuation issues. He has presented to such corporations as Northup Grumman and Coca-Cola. He has taught valuation courses at the FBI Academy in Quantico Virginia, and since 2002 has been on the faculty of the National Judicial College teaching business valuation concepts to judges. He has also presented for the Federal Judicial Center.

Mark is also the co-author of the courses, "Fair Value Accounting: A Critical New Skill for All CPAs" and "Accounting for Goodwill and Intangible Assets" published by the AICPA. Mark is also co-author of Fair Value Measurements: Valuation Principles and Auditing Techniques published 2007 by Tax Management, Inc., a division of the Bureau of National Affairs. He recently completed Fair Value Measurements: Practical Guidance and Implementation which will be published by John Wiley & Sons in 2010.

Customer Reviews

Most Helpful Customer Reviews

2 of 4 people found the following review helpful:

5.0 out of 5 stars A must read on SFAS 141 and 142, June 13, 2002

By 

tara naughton (Philadelphia, PA) - See all my reviews

This review is from: Valuation for Financial Reporting: Intangible Assets, Goodwill, and Impairment Analysis, SFAS 141 & 142 (Hardcover)

If you need to comply with SFAS 141 and 142, you will want to read this book. The authors understand these standards inside and out. The book's coverage is practical, thorough and written in easy to understand language (which is important because the changes outlined in SFAS 141 and 142 are far reaching and complex.) The best part of this book is that in addition to providing compliance guidance for SFAS 141 & 142, it also shows you how to apply the standards. This is key! I also found the book helpful on showing me how to identify and value intagible assests which is still a somewhatnew area for me.

2 of 4 people found the following review helpful:

5.0 out of 5 stars Great coverage of new SFAS 141 and 142, June 11, 2002

By A Customer

This review is from: Valuation for Financial Reporting: Intangible Assets, Goodwill, and Impairment Analysis, SFAS 141 & 142 (Hardcover)

This is timely and excellent coverage of SFAS 141 and 142. The authors' explanation are clear and complete. I would recommend this book to everyone involved in valuation.