Valuations of businesses, business ownership interests, securities, or intangible assets (“business valuations”) may be performed for a wide variety of purposes, ranging from transactions, litigation, compliance, and planning engagements. Valuation analysts have quite a lot of different factors to consider. In this session, we will cover:
- An overview of the valuation process and basics of value calculations
- Types of value—market, enterprise, and equity
- Income, market, and cost approaches to value
- Goodwill and intangible asset impairment testing
To provide accountants and financial professionals with the latest methods of how to properly utilize FASB ASC 820 to clarify and fully understand the process of valuing assets and liabilities.
- The Valuation Process
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Approaches to Valuation
– Income Approach
– Market Approach
– Asset Approach - Adjusted Book Value (ABV) Method
- Developing a Conclusion of Value
- Long-lived Assets Under ASC 360
- Recoverability Test and Impairment Measurement
- Guidance on Impairment Models Provided by ASC 350
- Available Resources
• Identify what price the fair value of financial and nonfinancial assets and liabilities is based upon
• Recognize the acceptable valuation techniques identified in ASC 820
• Identify what types of assets use the income approach valuation technique
• Recognize what valuation approach uses a discounted cash flow technique
• Identify what types of assets use the market approach valuation technique
• Recognize which types of transactions require the use of fair value measurement
• Identify the first step in the fair value conceptual framework