Valuation for Financial Reporting : Fair Value Measurements and ...
Valuation for Financial Reporting : Fair Value Measurements and ...
Valuation for Financial Reporting : Fair Value Measurements and ...
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Sample Intangible Asset <strong>Valuation</strong> Report Language <strong>and</strong> Example 1 169Reproduction Cost $13,388,333(2) Less: Obsolescence 25.0% (3,347,083)Replacement Cost 10,041,250Less: Taxes 40.0% (4,016,500)After-tax <strong>Value</strong> Be<strong>for</strong>e Amortization Benefit 6,024,750AmortizationBenefitDiscount Rate 17.0%Tax Rate 40.0%Tax Amortization Period (Years) 15AmortizationBenefit1,093,112<strong>Fair</strong> <strong>Value</strong> of Software, Rounded $7,120,000SOFTWARE DEVELOPMENT COSTS—ESTIMATED PROJECT TEAMFunctionNumberBurdenedHourly RateProject Manager 1 $200.00Systems Analyst 2 150.00Technical Writer 1 125.00Programmer 4 115.00Support 2 50.00Blended Hourly Rate, Rounded $119.00Footnotes:(1) Lines of code per hour, based on productivity assessment <strong>for</strong> average module of programming(2) Estimate based on number of lines of redundant/extraneous code, effective age, <strong>and</strong> remaining economiclife of system. Remaining useful life of this asset is four years.Note: Some amounts may not foot due to rounding.# Copyright 2007 by FVG Holdings, LC <strong>and</strong> <strong>Financial</strong> <strong>Valuation</strong> Solutions, LLC. All rights reserved. Usedwith permission.
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