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

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Implementation Aids 187Exhibit 5.1:Procedures for the Valuation of Intangible AssetsBusiness NameValuation DateThe definition of intangible asset should include current and non-current assets (excludingfinancial instruments) that lack physical substance. An intangible asset acquired in a businesscombination shall be recognized as an asset apart from goodwill if that asset arisesfrom contractual or other legal rights. If an intangible asset does not arise from contractualor other legal rights, it shall be recognized as an asset apart from goodwill only if it isseparable, that is, it is capable of being separated or divided from the acquired enterpriseand sold, transferred, licensed, rented, or exchanged (regardless of whether there is anintent to do so). For GAAP purposes, an intangible asset that cannot be sold, transferred,licensed, rented, or exchanged individually is considered separable if it can be sold,transferred, licensed, rented, or exchanged with a related contract, asset, or liability. However,the value of an assembled workforce of at-will employees acquired in a businesscombination shall be included in the amount recorded as goodwill regardless of whether itmeets the criteria for recognition apart from goodwill.The purpose of this checklist is to guide the analyst in the valuation of intangible assets.For each item, the analyst should indicate completion, or check the item N/A.CompletedN/AValuationq q 11. Determine the standard of value:a. Fair market valueb. Fair valuec. Investment valued. Intrinsic value or fundamental valuee. Other: ________________________________________q q 12. State the purpose of the valuation:q q 13. Determine the premise of value:a. Value in use, as part of a going concern (This premise contemplates thecontributory value to an income producing enterprise of the intangibleasset as part of a mass assemblage of tangible and intangible assets.)b. Value in place, as part of an assemblage of assets (This premisecontemplates that the intangible asset is fully functional, is part of anassemblage of assets that is ready for use but is not currently engaged inthe production of income.)(continued)
188 Valuation for Financial ReportingCompletedN/AValuation (Continued)c. Value in exchange, in an orderly disposition (This premise contemplatesthat the intangible asset will be sold in its current condition, with normalexposure to its appropriate secondary market, but without the contributoryvalue of any associated tangible or intangible assets.)d. Value in exchange, in a forced liquidation (This premise contemplatesthat the intangibleasset is sold piecemeal, in an auction environment, with an artificiallyabbreviated exposure to its secondary market.)Intangible Asset Descriptionq q 14. Is the intangible asset subject to specific identification or a recognizabledescription?q q 15. Categorize the intangible asset as:a. Marketing relatedb. Customer relatedc. Artistic relatedd. Contract relatede. Technology relatedq q 16. Determine and list the intangible assets eligible for appraisalq q 17. Describe fully the intangible asset identified. Attach necessary contracts,drawings, patents, listings, and so on to fully identify the intangibleasset.History of the Assetq q 18. Describe the legal existence and protection associated with the intangibleasset.q q 19. Is the transferability of the ownership restricted? Explain.q q 10. Describe the susceptibility of the asset being destroyed.q q 11. Describe the inception of the intangible asset (attach a list providing startdates for all customer or client lists).q q 12. To what degree is the revenue associated with these intangible assets due tothe day-to-day efforts of the owner? Explain.(continued)
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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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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 3.10 Target Company Calcula
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Exhibit 3.16 (Continued)Total Fair
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Exhibit 3.17 (Continued)2017 Taxabl
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Exhibit 3.19 Target Company Valuati
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Exhibit 3.22 Target Company Calcula
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Exhibit 3.23 (Continued)(5) After-t
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Exhibit 3.24 (Continued)Sum of Retu
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Exhibit 3.27 Target Company Summary
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Page 231 and 232: 210 IndexBusiness Enterprise Analys
Page 233 and 234: 212 IndexGoodwill (continued )111,
Page 235 and 236: 214 IndexLong-termcapital, 71debt,
Page 237 and 238: 216 IndexSecurities and Exchange Co
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