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

198 Valuation for Financial ReportingProvidedN/AProprietary Processes/Products Technology (Continued)q q 6. In the absence of historical cost records, estimate effort to recreatethe process/product technology if it were to be developed fromscratch:a. Who would work on the assignment (employees and consultants)b. Pay rates for individuals in 6ac. Information to determine overhead rateq q 7. Identify historical sale of products and/or services employing process/product technology for the last five years.q q 8. What products or services employ the proprietary process/producttechnology?q q 9. Provide projection of products and/or services that employ the process/product technology for the next five years.a. Project revenues including licensing income for the lifespanof process/product technology.b. Project direct expenses associated with producing revenue in 9a.c. Obtain or develop indirect expenses (i.e., overhead).q q 10. Are you licensing in or out any technology? If yes, provide details.In Process Research and Developmentq q 1. Describe the in-process research and development.q q 2. Describe competitive advantages and disadvantages of the in-processresearch and development.q q 3. Describe industry trends and competitive pressures that may affect theuseful life of the in-process research and development.q q 4. In light of 2 and 3 above, what is the estimated useful life of the in-processresearch and development support?q q 5. If available, please provide cost records documenting development ofthe in-process research and development:a. person hours to develop;b. various technical levels of persons working on the assignment;c. pay scales for individuals in 5b; andd. information to determine overhead rate.(continued)