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

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Implementation Aids 195CompletedN/ARelief from Royalties Method (Continued)q q 70. Analyze the licensee’s ability to assign the license to a third party, eitherdirectly or indirectly (for instance through the purchase of stock ownership).q q 71. What is the licensor’s presence within its own markets.q q 72. What is the licensor’s financial viability.q q 73. What is the licensor’s size and market share.q q 74. What is the licensor’s depth of senior management and stability.q q 75. What is the licensor’s depth of technical knowledge.q q 76. What is the licensor’s business plan related to the licensed products,including R&D funding and market analysis.q q 77. To what extent and timeliness does the licensor offer to support thelicensee including:a. Technical product adviceb. Assisting the licensee with salesc. Assisting the licensee with marketing efforts in the defined territoryq q 78. Determine the licensee’s available profit percentage available for theroyalty (25%?, 50%?) dependent upon the following:a. Available profitability as compared with the industryb. The nature of the long-term competitive advantage of the productc. The degree the license terms are favorable to the licenseed. The degree of support and market share offered by the licensore. The degree of any noncash value offered by the licensee to the licensorf. The degree the licensee is required to purchase certain components usedin the manufacturing of licensed products from the licensor (mandatorysupply arrangement)g. The degree of foreign exchange risk borne by either the licensee or thelicensor (the risk of future devaluation).Disclaimer Excluding Any Warranties: This checklist is designed to provide guidance to analysts, auditors,and management but is not to be used as a substitute for professional judgment. These procedures mustbe altered to fit each assignment. The practitioner takes sole responsibility for implementation of this guide.The implied warranties of merchantability and fitness of purpose and all other warranties, whether expressedor implied, are excluded from this transaction and shall not apply to this guide. The Financial ValuationGroup shall not be liable for any indirect, special, or consequential damages.Copyright # 2006 by FVG Holdings, L.C. and Financial Valuation Solutions, L.L.C. All rights reserved.
196 Valuation for Financial ReportingExhibit 5.2:Valuation Information Request – Intangible AssetsBusiness NameValuation DateThis is a generalized information request. Some items may not pertain to your company,and some items may not be readily available to you. In such cases, indicate N/A or notifyus if other arrangements can be made to obtain the data. Items already provided areindicated. If you have any questions on the development of this information, please call.ProvidedN/APatentq q 1. Provide a summary of patents held by the Company.q q 2. Provide copies of patent applications and patent abstracts.q q 3. Distinguish which patents have commercial applications (i.e., areproducing or are reasonably forecast to produce revenue in the future).q q 4. If available, provide historical cost records documenting development ofthe patent(s):a. person hours to develop;b. various technical levels of persons working on the assignment;c. pay scales for individuals in 4b; andd. information to determine overhead rate.q q 5. Identify patents and associated products that now have or are expected tohave commercial viability.a. prepare forecast or projection of revenues related to patentover the life of the patent; andb. project direct expenses associated with producing revenue in 5aq q 6. Comment on the possibility of extending patent protection beyondstatutory life of patent.q q 7. Are you licensing in or out any patents? If yes, provide details.Copyrightsq q 1. Provide a list of all copyrighted registrations.q q 2. Provide a list of works (articles, books, painting, etc.).q q 3. Identify copyright names that are associated with products and/or services(such as software or report templates).(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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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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Exhibit 3.10 Target Company Calcula
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100 Valuation for Financial Reporti
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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 3.19 (Continued)No. Job Tit
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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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Exhibit 4.2 Report Standard Compara
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Exhibit 4.2 (Continued)StandardNACV
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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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