Business Combinations, Intangible Assets
   and Goodwill Impairment

Pooling is dead!  Purchase price accounting is alive and complex.  FASB in SFAS 141 on Business Combinations and SFAS 142 on Intangible Assets has adopted new procedures, vocabulary and definitions.  For financial reporting purposes, Goodwill is no longer considered an Intangible asset.  It must be recorded and tested by SFAS 142 guidelines.

Intangible assets specifically identified in SFAS 141 must be valued and recorded on the financial records.  They can no longer be included as part of goodwill.

There are many new disclosures required with the financial statements.  Testing for impairment of all assets must be completed at least annually or whenever a defined triggering event occurs.  Details are provided below:

Our FCG Recognized Specialists have the skills, education and experience you need:

• They have testified before the Financial Accounting Standards Board on the mechanics of valuing intangible assets.
  
• They were requested by FASB to serve as ad hoc advisers to the FASB staff developing SFAS 141 and 142.
  
• They serve on the AICPA's Standards Committee (with representatives from audit, tax and business valuation) to develop business valuation standards as they apply to financial reporting, (e.g. SFAS 141 and 142).
  
• They have served on the AICPA business valuation subcommittee to review the draft AICPA "Best Practices" document on valuing In Process Research and Development.
• One of our Recognized Specialists has been requested to serve on a FASB task force considering revisions and enhancements to SFAS 141, including valuation implications related to preacquisition contingencies.
• They utilize the proprietary FVG Intellectual Property Transaction Database. This may be the largest Intellectual Property transaction database with supportable data available in the country.
• They have extensive experience in SEC and intangible asset engagements.

For additional information click on one of the topics listed below:

• Locate one of our FCG recognized “Financial Reporting for Intangible Assets and Goodwill Impairment” Specialists.
  
• Learn about the two-step process for testing goodwill impairment.
  
• Recognize the events defined as triggering the need to conduct goodwill impairment testing.
  
• Define the reporting unit for impairment testing.
  
• Learn about the Standard of Value to be used under SFAS 141 and 142 and how is it defined.
  
• Determine the appropriate method for assigning amounts (values) to the Balance Sheet Assets (purchase price allocation).
  
• Identify goodwill and its component parts.
  
• Categorize your Intangible Assets per SFAS 141.
  
• Learn to correctly recognize Intangible Assets.
  
• Discover the criteria for determining the remaining useful life of an Intangible Assets.
  
• Reconcile the appropriate financial return for each asset type.
  
• Learn about the regulatory methodology for determining fair value.
  
• Learn about your transitional restatement responsibilities.
  
• Comply with the new disclosure requirements.
  
• Schedule the effective dates into your calendars.
  
• Review many of the new definitions.
  
• Review our list of Frequently Asked Questions.
  
• Review the qualifications of appraisers who complete valuation engagements for financial reporting purpose
  
• Review the services offered by our FCG recognized specialists.