Valuation for Financial Reporting : Fair Value Measurements and ...

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Valuation approaches and methods used 4.3.b.15 (6) p20 VII A 59–62 71 76 (2) 5.3 (a) (ix)Valuation approaches and methods4.3.b.15 USPAP 59–62 5.3 (a) (ix)consideredValuation approaches and methods rejected USPAP 5.3 (a) (ix)Conclusion of value and signature 4.3.d p20 VIII 68 71 76 5.5 4.5 (a) (ix)Estimate or opinion disclosure 4.3.d 68 71 76Signature of primary appraiser 4.3.b.17 p18 II(A) 68 71 76 1.30 1.30 (a) (xi)Firm signature option 1.2.k p18 II(A) 68 71 76 1.30 1.30Financial information disclosure 4.3.b.9 p19 VI 54–56 5.5 4.5 (a) (ix)Historical financial statement (F/S)4.3.b.16 p19 VI A 58 (a) (ix)summariesAdjustments to historical F/S4.3.b.17 p19 VI B 63 (a) (ix)summariesAdjusted F/S summaries 4.3.b.18 Implied 58 (a) (ix)Projected/forecasted F/S4.3.b.19 p19 VI C 58 (a) (ix)including assumptionsTax return information 53If appropriate, financial comparisonto industryp19 VI D 58Limiting conditions and assumptions 4.3.b.8 p18 III 52 71 5.3 4.3 (a) (x)The scope of work of the appraisal 4.3.b.8 USPAP 52 71 (a) (viii)Use of report limitations 4.3.b.10 USPAP 49 71 (a) (ii)Intended users of the valuation USPAP 52 71 5.4 4.4 (a) (i)Representations, disclosures, andcertifications4.3.b USPAP 51 71 (a) (xi)Subsequent events in certaincircumstances52 71Jurisdictional exception application USPAP 52 71 Stated54Firm attestation engagementdisclosureTax preparer/client relationshipdisclosureHypothetical conditions if any USPAP 52 71 74 1.22 1.22 (a) (x)Extraordinary assumptions if any USPAP (a) (x)Disclosure of not auditing, reviewingor compiling F/SThe reports scope limitations 4.3.b.8 USPAP 52 71 (a) (viii)5556(continued )139
Exhibit 4.2 (Continued)StandardNACVAASA(Full)AICPA(Full)AICPA(Summary)AICPA(Calculation)Statement of independence 4.3.b.12 p18 III A (a) (xi)If a specialist was used, a reliancep18 III B 52 71 (a) (xi)use statementAppraiser representations 65 71Appraisal certification signedUSPAP 71 5.3 (a) (xi)by appraiserNo obligation to update statement 76Conforms to organizations’4.3.c p18 II(B) 65 76 1.25 1.25 (a) (xi)standardsQualifications of the appraiser 1.26 1.26IBA(Full)IBA(Letter)USPAP10–20 (1)Footnotes:(1) USPAP 10(a) the appraisal report; 10(b) the restricted use report(2) General description of engagement and calculation procedures agreed upon.(3) USPAP requires a cite of standard and premise of value.(4) AICPA requires whether a site visit was made and to what extent.(5) IBA requires disclosure if no site visit was made by the appraiser.(6) NACVA refers to Revenue Ruling 59-60 tenets as ‘‘fundamental analysis’’(7) USPAP 10(a)(ix) requires that the appraiser summarize the information analyzed, the appraisal procedures followed, and the reasoning that supports the analyses,opinions, and conclusions; exclusion of the market approach, asset-based (cost) approach, or income approach must be explained; 10(b) (ix) requires that the appraiserstate the appraisal procedures followed, state the value opinion(s) and conclusion(s) reached, and reference the work file; exclusion of the market approach, asset-based(cost) approach, or income approach must be explained.(8) ASA includes form of organization, history, products and/or services, markets and customers, management, major assets, both tangible and intangible, and majorliabilities, sensitivity to seasonal or cyclical factors, competition and ‘‘such other factors’’(9) AICPA refers to nature, background and history, facilities, organizational structure, management team, classes of equity ownership interest and rights attached thereto,products and/or services, geographical markets, key customers and suppliers, competition and business risks.(10) IBA includes the form of the organization and if incorporated, the state of incorporation, together with a description, adequate to the assignment, of all classes ofsecurities outstanding and a list of shareholders whose interest should, in the appraiser’s judgment be specified. If a partnership, the type and the state of filing,together with a list of those partners, whether general or limited, whose interest should, in the appraiser’s judgment, be specified.# Copyright 2007 by Donald P. Wisehart, ASA, CPA/ABV, CVA, MST. Used with permission.140
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VALUATION FORFINANCIALREPORTINGFair
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VALUATION FORFINANCIALREPORTINGFair
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To our familiesnear and faryoung an
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PrefaceThe second edition of this b
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AcknowledgmentsTo Deanna Muraki, th
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xivAbout the Authorsappraiser with
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Valuation for FinancialReportingFai
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2 Valuation for Financial Reporting
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10 Valuation for Financial Reportin
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Appendix 1.2Pronouncements Excluded
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Intellectual PropertyAppendix 2.1On
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Appendix 2.2Significant Changes in
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# Copyright 2007 by FVG Holdings, L
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Exhibit 3.4 Target Company Business
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Exhibit 3.5 Target Company Business
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Exhibit 3.7 Target Company Valuatio
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Exhibit 3.7 (Continued)No. Job Titl
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Exhibit 3.8 Target Company Valuatio
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Page 129 and 130: Exhibit 3.17 (Continued)2017 Taxabl
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Page 187 and 188: Exhibit 4.4 (Continued)Actual Forec
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190 Valuation for Financial Reporti
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210 IndexBusiness Enterprise Analys
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212 IndexGoodwill (continued )111,
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214 IndexLong-termcapital, 71debt,
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216 IndexSecurities and Exchange Co
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