Fair Value Measurements : Practical Guidance and Implementation

Fair Value Measurements, Second Edition: Practical Guidance and Implementation is a hands-on guide for implementing the FASB's Topic 820 (formerly SFAS 157), and provides the latest information about the best practices for measuring fair value in financial reporting. The book includes detailed examples of the cost, market and income approaches for measuring the fair value of certain assets and liabilities. It covers fair value measurements in a business combination, measuring contingent consideration, and how to subsequently test the value of acquired assets for impairment. The book also assists financial statement preparers, valuation specialists and auditors in improving their understanding of measure fair value.

MARK L. ZYLA, CPA/ABV, CFA, ASA, is a leader in the area of fair value measurement. He is Managing Director of Acuitas, Inc., an Atlanta, Georgia–based valuation and litigation consultancy firm, providing valuation consulting for various entities for the purposes of mergers and acquisitions, financial reporting, tax planning, corporate recapitalizations, as well as valuing various types of intellectual property and other intangible assets. He has served as Chairman of the AICPA's Fair Value Measurement Conference and serves on the AICPA's Impairment Issues Task Force. He is also the author of the AICPA courses "Fair Value Accounting: A Critical New Skill for CPAs" and "Valuing Goodwill and Other Intangible Assets." He was vice chairman of the Appraisal Foundation's first Best Practices in Valuation for Financial Reporting Working Group. He serves on the faculty of the National Judicial College. Mark lives in Atlanta with his wife, JoAnn, and son, Jack

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Preface

Acknowledgments

Chapter 1: The History and Evolution of Fair Value Accounting

Chapter 2: Fair Value Measurement Standards and Concepts

Chapter 3: Business Combinations

Chapter 4: The Nature of Goodwill and Intangible Assets

Chapter 5: Impairment

Appendix 5A: Example of a Qualitative Impairment Analysis - PlanTrust, Inc.

Chapter 6: The Cost Approach

Chapter 7: The Market Approach

Appendix 7A: Using the Guideline Transaction Method to Measure the Fair Value of a Privately Held (or Thinly Traded) Debt Security

Chapter 8: The Income Approach

Chapter 9: Advanced Valuation Methods for Measuring the Fair Value of Intangible Assets

Chapter 10: Measuring the Remaining Useful Life of Intangible Assets in Financial Reporting

Chapter 11: Fair Value Measurement for Alternative Investments

Chapter 12: Contingent Consideration

Appendix 12A: Measuring the Fair Value of a Non-Financial Contingent Liability - Example of a Loan Guarantee

Chapter 13: Auditing Fair Value Measurement

Appendix 13A: Auditing Fair Value Measurement in a Business Combination and a Step 2 Impairment Test

Appendix 13B: Auditing Fair Value Measurement in Step 1 Goodwill Impairment Test

Appendix 13C: Survey of Fair Value Audit Deficiencies

Chapter 14: Fair Value Measurement Case Study

Appendix 14A: Suggested Case Study Solutions

Information Request—SFAS 142

Information Request for Business Combinations—SFAS 141R

Glossary of International Business Valuation Terms

Bibliography

About the Author

Index