Index

  •  
  • Accounting alternatives
    • application, 37–40
    • election, timing, 37
  • Accounting estimate, change, 212
  • Accounting for Goodwill, a Consensus of the Private Company Council, (ASU 2014-02), 101–102, 186–187
  • Accounting for Mergers and Acquisitions of Not-for-Profit Entities (APPS 5203), 31
  • Accounting Standards Codification (ASC)
    • 280-10, segment disclosures, 152
    • 450-20, 40–41
    • 730-10, 10, 19
    • 740, 218
    • 960, 103
  • Accounting Standards Codification (ASC) 250, 37
  • Accounting Standards Codification (ASC) 350, 218
    • 350-20-35-3C, 187–188
    • 350-20-35-8B, 188
    • 350-20-35-28, 148
    • 350-20-35-38, 116
    • 350-20-50-1, 204–205
    • 350-20-50-2, 206
    • 350-20-55-23A-D, 163
    • 350-30-25-1, 13
    • 350-30-30-1, 13
    • 350-30-35-3(d), 92–93
    • 350-30-35-18/20, 98
    • 350-30-35, impairment test, 99
    • 350-30-50-2, 195
    • 350-30-50-36, 126
    • 350-30-55, 124–125
    • 350-30-55-40, 196
    • 350-30, indefinite-lived intangible assets (impairment tests), 113
    • 350-30, purposes, 89
    • 350-40, 10
      • impact, 12–13
    • 350-40-25-27, addition, 13
    • 350-40-65-2, 13
    • 350-50, 17
  • Accounting Standards Codification (ASC) 360
    • 360-10, 98
      • asset group, entry, 140
      • Impairment or Disposal of Long-Lived Assets subsection, 112
    • 360-10-35, facts/circumstances, 119
  • Accounting Standards Codification (ASC) 805, 226
    • 805 (business combination rules), 25, 155
    • 805-20-55, intangible asset list, 4–5
    • 805-50 guidance, 23
    • 805-740, 19
    • 805-740-55-9, 163, 188
  • Accounting Standards Codification (ASC) 820
    • 820 (fair value measurement guidance), 24–25
    • 820 (valuation identification), 47–48
    • 820-10-50, 198, 206
  • Accounting Standards Codification (ASC) 985
    • 985-20, impact, 10, 17
    • 985-605, 13
      • revenue guidance, 11
  • Accounting units
    • asset removal, 128
    • creation, guidelines, 122–124
    • selection, effect, 128
  • Account title, 253–255
  • Acquired company, overpayment/underpayment, 253
  • Acquired defensive intangible assets, 29–30
    • IFRS, 30
    • U.S. GAAP, 29–30
  • Acquired goodwill, valuation, 83, 87
  • Acquired intangible assets, measurement, 47
  • Acquired IPR&D assets, 201–204
  • Acquired net assets, fair values (excess), 242
  • Acquiree
    • customer base contact, 36
    • noncontrolling interest, 31–43
      • fair value, 87
    • registered trademark, 36
  • Acquirer, identification, 31, 33
  • Acquisition
    • date, determination, 31, 33
    • method, 58
      • application, 37
    • price (ASC 805), 32
  • Acquisition-date amounts, net, 87
  • Actions/plans, restructuring, 158
  • Actual future cost savings, 173e
  • Actual net cash savings, 172e
  • American Institute of Certified Public Accounts (AICPA)
    • Assets Acquired to Be Used in Research and Development Activities, 202–204
    • disclosures, 201–203
  • Amortizable 197 intangible, taxpayer disposal, 223
  • Amortization
  • Amortizing assets, 209
  • Annual goodwill testing, timing, 148–150
  • Application development stage, 15
  • Appraisal assumptions, 203–204
  • Assembled workforce, 77
    • asset identification, 43
    • valuation, cost approach, 78t
  • Assets. See Amortizing assets; Non-amortizing assets
    • accounting unit grouping, 121–130
    • acquisitions, 225
      • accounting guidance (ASC 805-50), 24
    • capitalization, 256
    • cash flow generation, 123
    • cash inflows, generation (absence), 137–138
    • customer-related assets, 38
    • expected usage, 91, 105
    • fair value
      • determination (ASC 820), 24–25
      • purchase price, excess, 27
    • function, testing costs, 28
    • groupings, 142
    • groups
      • carrying amount, determination, 145
      • creation, 140–143
    • obsolescence/physical damage, evidence, 120
    • operation, stability, 106
    • product life cycle, 105
    • purchase, 122
    • removal, 128
    • uncertainty, 175
      • price, bearing, 177–178
    • undiscounted expected cash flow, association, 146
    • useful life, dependence, 106
    • working condition, professional fees, 28
  • Association of Chartered Certified Accountants (ACCA), “Impairment of Assets,” 207
  • ASU 2011-08 (Basis for Conclusions), 156
  • ASU 2012-02, 119
    • Basis for Conclusions, 133–134
  • ASU 2014-02, 101–102, 186
  • ASU 2014-18, 36–37
  • ASU 2017-04, 147–148, 151–154, 161–163, 188, 205–206
  •  
  • Bargain purchase, 44–45
  • Benetton, real-time information, 4
  • Black-Scholes-Merton formula, 52
  • Bloomberg BNA annotations, 243–247
  • Branding strategy, 123
  • Brokered market, 49
  • Business
    • acquisition, concept, 26
    • combination rules (ASC 805), 25
    • conducting, costs, 29
  • Business Enterprise Value (BEV), 60, 65
  •  
  • Capital Asset Pricing Model (CAPM), 65
  • Carrying amount, 212
    • determination, 145
    • equity, contrast, 37
    • level, analysis (change), 160–161
    • positive level, impact, 161–163
    • reductions, 186
  • Cash flow
    • amount/timing, variations (expectations), 178–180
    • deterioration, 137
    • estimated future cash flows, variation, 179e
    • estimated future net cash flows, determination, 165–175
    • forecast, 55
    • generation, 123
    • loss, 144
    • timing, variation, 175
  • Cash-generating units (CGUs), 213, 247
    • goodwill allocation, 182–183
    • IFRS, impact, 129–130
    • recoverable amount, 184
  • Cash inflows, generation (absence), 137–138
  • Churn rate, 92
  • Citibank, online banking system, 4
  • Closed-form model, 52
  • Codification. See Accounting Standards Codification; Financial Accounting Standards Board
    • examples, analysis, 124–128
  • Competition, effects, 91
  • Competitors, expected actions, 106
  • Computer software
    • amortization, absence, 232–233
    • internal use examples, 11
  • CON 5, 26
  • CON 7, 175
  • Conduit bond, usage, 104
  • Consideration, overvaluation, 252–253
  • Contingent assets/liabilities, 40–42
  • Contract assets, consideration, 38
  • Contract services, R&D costs, 20
  • Contractual-legal criterion, 25, 34
  • Contractual life, renewal/extension, 198
  • Contributory asset charge (CAC), 54, 69
  • Contributory assets, required return, 74t
  • Contributory charge, basis, 69–70
  • Corporate debt, E&Y position, 154
  • Corporation, interests, 232
  • Cost approach, 57–59
    • International Glossary of Business Valuation Terms definition, 58
    • shortcomings, 66
    • usage, 68t, 78t, 84t
  • Cost factors, 133, 150, 157
  • Cost model, revaluation model (contrast), 107–109
  • Costs accumulation, 144
  • Cost savings, intangible asset (comparison), 175
  • Covenant, competition (absence), 229
  • Current-period operating loss, 144
  • Customer relationships, 66–67
    • asset identification, 60
    • valuation, cost approach, 68t
  • Customers
    • churn rate, 92
    • customer-based intangibles, 227–228
    • customer-related assets, sale, 38
    • lists, 97
  •  
  • Dealer market, 49
  • Debt-free cash flows, prospective financial information, 60
  • Debt principal payments, E&Y perspective, 140
  • Defensive assets, useful lives (estimation), 97
  • Defensive intangibles assets, 29–30
  • Deferred tax asset, recognition, 217
  • Deferred tax consequences, 216–221
  • Dell, customer-designed computers, 3
  • Demand, effects, 91
  • Deposit liabilities, market participant exchange, 36
  • Development
    • costs, capitalization (IAS 38 requirements), 23
  • Development phase, activities examples, 22
  • Directly attributable costs, examples, 28
  • Disclosures
    • IFRS, impact, 247–248
    • U.S. GAAP, impact, 243–247
  • Discounted cash flow (DCF), 53–54, 248
    • analysis, 61t–62t
    • International Glossary of Business Valuation Terms definition, 53
    • variation, 69
  • Discount rate
    • determination, 175–181
    • risk-adjusted discount rate, 177
    • selection, 176
  • Discrete cash flows, 141
  • Disposal costs, deduction, 139
  • Dollar-for-dollar basis, 225
  •  
  • Earnings, interpretation, 257–258
  • Economic environment, deterioration, 150
  • Economic factors, 91, 123
  • Effects of Changes in Foreign Exchange Rates, The, (IAS 21), 183
  • Employee benefits cost (IAS 19), 28
  • Enterprise market capitalization, decline, 158
  • Entity
    • disclosure, 212–213
    • events/circumstances assessment, 157–158
  • Entity-specific events, impact, 133, 150, 158
  • Environment, deterioration, 157
  • Equity, carrying amount (contrast), 37
  • Ernst & Young (E&Y), 39, 100–102, 128
    • asset groupings, 142
    • corporate debt position, 154
    • debt principal payment perspective, 140
  • Estate, interests, 232
  • Estimated future cash flows, variation, 179e
  • Estimated future cost savings, 173e
  • Estimated future net cash flows, determination, 165–175
  • Estimated useful life, determination, 90–99, 104–107
  • Excel formula, equal sign (usage), 167
  • Excel worksheet, preparation, 166e
  • Exchange market, 49
  • Excluded items, 231–233
  • Expenditures, examples, 28–29
  • Externally marketed software, 14
    • example, 10
  •  
  • Fair value
    • cost approach, 57–59
    • decline, 131
    • determination, 32–33
    • estimation
      • DCF method, 54
      • inputs, observation, 48–49
    • excess, 242
    • income approach, 52–55
    • market/income approach, 56–57
    • measurement, 47–48
      • consistency/comparability, increase, 50
      • guidance (ASC 820), 24–25
      • valuation techniques, 52–59
    • multiple valuation approaches, 59
  • Fair Value Measurement (IFRS 13), 47
  • Favorable interpretation, 257
  • Financial Accounting Standards (FAS)
  • Financial Accounting Standards Board (FASB)
    • Basis for Conclusions, 38
    • Codification
      • events/circumstances, examples, 133
      • subtopics, 5
    • Concepts Statement No. 5, 25–26
    • Master Glossary, 83
  • Financial contracts, interests, 232
  • Financial performance, 158
  • Financial reporting goodwill, 219
    • tax-deductible goodwill, contrast, 220–221
  • Financial statement
  • Finite-lived intangible assets, impairment testing, 139–146
  • Finite lives, 109–110
  • Fixed assets, asset identification, 60
  • Form 10-Q, 150
  • Franchise, 229–230
    • acquisitions, 230–231
  • Fresh-start reporting (ASC 852), 37
  • Future cash flow, pricing, 138
  • Future economic benefits, application, 7
  •  
  • Gain, recognition (approach), 45
  • Generally accepted accounting principles. See U.S. generally accepted accounting principles
  • Going-concern value, 221, 224–226, 256
  • Goodwill
    • amortization, 101–104, 221–235
    • annual goodwill testing, timing, 148–150
    • annual impairment test, change, 117
    • asset, 248–249
      • capitalization, 256
    • deferred tax consequences, 215–221
    • definition, 253–255
    • disclosures, requirement, 197e, 204–210
      • rules, 204–205
    • disposal group inclusion, 205
    • entity recognition, 235
    • evaluation, 147
    • FASB Master Glossary definition, 83
    • financial statement presentation, 193, 193e
    • gross amount, 205
    • impairment, 163–165
    • impairment testing, 111, 146
      • date, change, 148–149
      • example, 240–241
      • quantitative goodwill impairment test, 160–165
    • issues, recurrence, 253–259
    • measurement, 87, 234, 249–250
    • nature/components, 248–259
    • post-acquisition, value, 255–256
    • recognition/measurement, 31, 44–45
    • U.S. GAAP/IFRS guidance, differences, 237–240
    • value, 224–226
  • Governmental license, 70
  • Government-granted licenses/permits/rights, 228–229
  • Government license, asset identification, 60
  • Greenfield method, 55, 75t–76t
  •  
  • Historical costs, nonadjustment, 66–67
  • Historical experience, 91
  • Hosting contract, definition, 13
  • Hosting services, fees (ASC 350-40 impact), 12–13
  •  
  • IAS 8, 212
  • IAS 16, 164, 186, 233
  • IAS 19, 28
  • IAS 21, 183
  • IAS 36, 164, 183, 186, 211
    • approach, 142
    • events/changes, examples, 120–121
    • requirement, 118
  • IAS 38
    • analysis, 105
    • impact, 5–9
    • requirements, 23
    • U.S. GAAP, comparison, 6
  • IAS 40, 233
  • Identifiable assets
    • acquisition-date amounts, net, 87
    • recognition/measurement, 31, 33–43
  • Identifiable intangible asset, definition, 25
  • Identification of Contributory Assets and Calculation of Economic Rents, 54
  • Illiquidity, 175, 180–181
  • Impairment
    • calculations, application, 185
    • indicators, 158
    • losses, 185, 192, 196, 198, 205–210
      • calculation, IFRS (impact), 137–139
      • determination, 188
      • disclosure, U.S. GAAP/IFRS requirement, 213
      • gross amount, 205
      • recognition, 198
    • measurement, 189
  • Impairment test, 99, 101–102
    • annual test, change, 117
    • conducting, U.S. GAAP perspective, 144
  • Impairment testing, 111, 115–139
    • conducting
    • indefinite-lived intangible assets, memo template, 259–263
    • interim impairment testing, timing, 118–121
    • rules, 111–115
    • timing, 116–118
  • Income approach, 52–55
    • International Glossary of Business Valuation Terms definition, 52
    • methods, Practicing CPA description, 52–53
  • Indefinite-lived intangible assets, 93, 145
    • factors, combination, 122–123
    • fair value, decline, 134
    • impairment
    • memo template, 259–263
  • Indefinite lives, 110
  • Indirect costs, R&D costs, 20
  • Industry-specific costs, capitalization, 9
  • Information base, 227
  • In-process research and development (IPR&D), 42–43
  • Inputs, availability, 50–51
  • Intangible assets (intangibles), 224–231. See also Customers; Supplier-based intangibles
    • acquired defensive intangible assets, 29–30
    • acquisition, 13, 212
      • business combination, 31–45
      • period, disclosures (requirement), 194
    • amortization, 89, 109–110, 194–195
      • methods, 100–101
    • ASC 805-20-55 list, 4
    • asset acquisition, 23–30
    • carrying amounts, 212
    • completion, technical feasibility, 21
    • contractual-legal criterion, 34
      • considerations, 92–93
      • meeting, 34–35
    • control attribute, 7
    • cost, expenditures (examples), 28–29
    • cost savings, comparison, 175
    • deferred tax consequences, 215–221
    • definitional criteria, 6–9
    • economic benefits, 21
    • examples, 8–9
    • excluded items, 231–233
    • existence, 212
    • expenditures, examples, 28–29
    • financial statement presentation, requirement, 191–193
    • finite life, 105
      • impairment testing, 139–146
    • future economic benefits, 7
    • IAS 38, impact, 5
    • identifiability attribute, 6
    • IFRS 3 list, 5
    • IFRS definition, attributes, 6–9
    • impairment testing, 111
    • impairment tests, 112e
    • indefinite lives, impairment testing, 115–139
    • internally generated intangible assets, IFRS rules, 21–23
    • I.R.C. 197, impact, 221–235
    • purchase, R&D costs, 20
    • recognition, 1, 5–9
      • criteria, 8
    • relevance, 2–3
    • renewal/extension terms, 194
    • sales, 210
    • self-created intangible assets, 9–23
    • separability criterion, considerations, 96–97
    • technology-based intangible assets, useful lives, 107
    • treatment, 32e
    • types, 4e
    • useful life
      • change, 198–199
      • determination, 90
      • decisions, 94e–96e
    • U.S. GAAP/IFRS guidance, differences, 237–240
    • valuation, 66–83
      • inputs, 48–51
      • principles, application, 59–83
      • techniques, 48–59
  • Intangible assets, disclosures
    • acquired IPR&D assets, 201–204
    • impairment losses, 196–197
    • internal research and development, 199–201
    • legal/contractual life, renewal/extension, 198
    • requirements, 194–201, 196e, 197e
    • rules, 194–196
  • Intangible assets, fair value, 36–37
    • cost approach, 57–59
    • income approach, 52–55
    • market/income approach, 56–57
    • measurement, valuation techniques, 52–59
    • multiple valuation approaches, 59
  • Interest, risk-free rate, 175–178
  • Interim impairment testing
    • IFRS, impact, 119–121
  • Interim impairment testing, timing, 118–121
  • Internally developed software
    • capitalization, 9–17
    • marketing, ASC 985-20 (impact), 10
  • Internally generated intangible assets, IFRS rules, 21–23
  • Internal research and development, 199–201
  • Internal-use software, product qualification, 11
  • International Accounting Standards Board (IASB), IAS No. 14, 182
  • International Financial Reporting Standard (IFRS), 233–235
    • 3 (fair value excess), 44
    • 3, intangible asset list, 5
    • 3(R), requirement, 30
    • 13, impact, 47, 139
    • disclosure requirements, 210–213
    • goodwill impairment testing, 181–186
    • impact, 137–139
    • intangibles, measurement, 104–110
    • interim impairment testing, 119–121
    • rules, 27–29
  • I.R.C. 197
  • I.R.C. 1253(d)(1), 230
  •  
  • Knowhow, 227
  • KPMG, 39
  •  
  • Land
    • easements (ASC 350-30-55-29), 124–125
    • interests, 232
  • Lattice model, 52
  • Legal factors, adverse change, 144
  • Legal life, renewal/extension, 198
  • Liabilities
    • assumption, 31–43
    • uncertainty, price (bearing), 177–178
    • U.S. GAAP recognition, 41
  • License valuation, greenfield method, 75t–76t
  • LINEST function, 173, 178
  • Long-lived asset
    • cash flow dependence, 143
    • market value, 143
  • Long-lived intangible asset, depreciation, 145
  •  
  • Macroeconomic conditions, impact, 133, 150, 157
  • Maintenance expenditure level, requirement, 106
  • Management Discussion and Analysis (MD&A), 199
    • disclosures, 203–204
  • Manufacturing facility, acquiree lease, 34
  • Market approach
    • International Glossary of Business Valuation definition, 56
    • straight market approach, 57
  • Market/income approach, 56–57
  • Marketing strategy, 123
  • Markets
    • examples, 49
    • imperfections, 175, 180–181
    • interest rates, 120
  • Materials/equipment/facilities, R&D costs, 20
  • Memo, template, 259–263
  • Milk quotas, intangible asset example, 108
  • Money, time value, 175
  • Multi-period excess earnings method (MPEEM), 54–55, 69
  • Multi-period excess earnings model, 72t–73t
  •  
  • National Association of Securities Dealers Automated Quotations (NASDAQ), 48
  • Net cash flow, estimation methods, 174–175
  • Net present value (NPV), 189–190
  • Net working capital, asset identification, 60
  • New York Stock Exchange, 49
  • Non-amortizing assets, 209
  • Non-compete agreement, 77, 79
  • Non-competition agreement
    • analysis, scenario method, 80t–82t
  • Non-competition agreement, asset identification, 60
  • Noncompetition agreements, 38–39
  • Noncontrolling interest, fair value, 87
  • Non-goodwill asset, 185
  • Nonlinear data, actual net cash savings, 172e
  • Non-monetary asset, physical substance (absence), 6
  • Non-taxable business, combination, 218
  • Not-for-profit entity, status, 103
  • Nuclear power plant, acquiree ownership/operation, 34–35
  •  
  • Obsolescence
  • Operating cash flows, generation, 3
  • Operating losses, 158
  • Operating segment (business component), 152–153
  • Over-the-counter markets, 49
  •  
  • Partnership, interests, 232
  • Personnel, R&D costs, 20
  • Physical damage, evidence, 120
  • Pink Sheets LLC, 49
  • Post-acquisition balance sheet, fair value nonrecognition, 77
  • Postimplementation-operations stage, 15
  • Preacquisition contingency, fair value, 40
  • Preliminary project stage, 14
  • Present rate
    • discount rate, determination, 175–181
  • Present value
    • actual cost, 171e
    • calculation, 165–181
    • estimated cost, 171e
    • estimated future cost savings, 173e
    • estimation
    • straight line, determination, 168e
  • PricewaterhouseCoopers, 39, 116
    • perspective, 117
  • Principal-to-principal market, 49
  • Private companies
    • accounting alternative, 36–40, 189
    • goodwill, amortization, 101–104
  • Private Company Council (PCC), accounting (alternative), 186–187
  • Private enterprises
    • goodwill impairment testing, 186–190
    • U.S. GAAP perspective, 186–190
  • Product life cycles, 105
  • Proprietary software, 79, 83
    • asset identification, 60
    • valuation, cost approach, 84t
  • Proprietary technology, 69–70
  • Prospective financial information (PFI), 60
  • Public business entity, status, 103
  • Public information, product life cycles, 105
  •  
  • Qualitative assessment, 156–160, 187–188
    • introduction, 131
    • purpose, 130–135
  • Qualitative factors, assessment, 147
  • Quantitative goodwill impairment test, 160–165
  • Quantitative impairment test, 136–139
    • performing, 147
      • reduction, 131
  • Quantitative threshold, application, 23
  •  
  • Reacquired rights, 107
  • Reasonably possible, term (usage), 199
  • Recognition and Measurement in Financial Statements of Business Enterprises (FASB Concepts No. 5), 25–26
  • Recognition criteria, 8
  • Recoverability
    • assessment, 143
    • test, 139–140
  • Recoverable amount, determination, 183–184
  • Regression analysis, 165–166
  • Relief-from-royalty method, 57, 67
    • tradename valuation, 71t
  • Renewals
    • IAS 38 language, 106
    • principal, 106–107
  • Reorganization transaction, fresh-start reporting (ASC 852), 37
  • Replacement costs, 58–59
  • Replacement costs, basis, 57
  • Reporting unit, 151–155
    • assets/liabilities, assignation, 153–154
    • definition, 152
    • events, impact, 151
    • fair value, 153, 161–162
      • determination, 162
    • goodwill, assignation, 154–155
    • identification, 151–153
    • level, 187
    • reorganization, 155
  • Reproduction cost, 58
  • Research and development (R&D)
    • activities, 19–20
      • categories, 20
      • disclosure, SEC Comment Letter, 241–243
    • activities costs, 20
      • accounting, 19
    • assets, acquisition, 19
    • expenses, guidance (ASC 730-10), 19
    • in-process research and development (IPR&D), acquisition, 26–27
    • internal research and development, 199–201
    • process, acquisition/development/improvement, 19
    • software creation/usage, 16–17
    • total R&D expense, composition, 242
  • Research phase, activities examples, 22
  • Residual cash flow, 70
  • Revaluation model, cost model (contrast), 107–109
  • Revenues
    • guidance (ASC 985-605), 11
    • uncertain continuity, 92
  • Risk-adjusted discount rate, 177
  • Risk-free asset, 178
  • Risk-free interest rate, 176–177
  • Royalty rates, 48
    • analysis, 57
    • payment, 67
  •  
  • Scenario method, 80t–82t
    • incremental income/deficit, 55
  • Securities and Exchange Commission (SEC)
    • comment letters, 201, 208–210
    • requirements, 103
    • staff comment letters, 203–204
  • Securities Exchange Act of 1934, requirements, 103
  • Security, market price (nonrepresentation), 162
  • Segment Reporting (International Accounting Standards Board IAS No. 14), 182
  • Self-created intangible assets, 9–23
  • Self-generated intangible assets, impact, 2
  • Separability criterion, 25, 33–35
    • considerations, 96–97
  • Separately acquired intangible assets, cost (IAS 38 analysis), 28
  • Separate sales factor, 123
  • Service contract, 13
  • Share price, decrease, 158
  • Short-term Treasury bills, U.S. government default, 177
  • Significant penalty, 11–12
  • Single asset factor, 122
  • Small-to-medium enterprises (SMEs), goodwill impairment testing, 186–190
    • IFRS perspective, 189–190
  • Software
    • application development stage, 15
    • costs, 17
    • fair value recognition, 17
    • internal use, 14–16
    • postimplementation-operation stage, 15
    • preliminary project stage, 14
    • research and development usage, 16–17
    • tools, development costs, 18
    • upgrades/enhancements, 15–16
  • Software as a Service (SaaS), 11
    • development/maintenance costs, 12
  • Stock exchange seats, intangible asset example, 108
  • Straight line, determination, 168e
  • Straight market approach, 57
  • Supplier-based intangibles, 228
  •  
  • Tangible assets, impact, 3
  • Tax-deductible amortization expense, 217
  • Tax-deductible goodwill, 219
    • financial reporting goodwill, contrast, 220–221
  • Taxi medallions, intangible asset example, 108
  • Technology
    • technology-based intangible assets, useful lives, 107
    • valuation, multi-period excess earnings model, 72t–73t
  • Technology patent, acquiree ownership, 35
  • Time value of money, 175
  • Total assets, intangible asset classification, 2
  • Total R&D expense, composition, 242
  • Trademark, 229–230
  • Trade name, 229–230
    • asset identification, 60
    • fair value, 67, 69
      • example, 51
    • usage, 125–126
  • Tradename, valuation, 71t
  • Treasury Regulations 1.1060-1T(c)/1.338-6/7, 225
  • TREND function/formula, 169–172, 178
  • Trust, interests, 232
  •  
  • Unobservable inputs, 50
  • Unpatented technology, 97
  • Useful life
    • determination, 92, 104–107
      • changes, 98–99
    • estimation, 97
    • timing, 210
  • U.S. generally accepted accounting principles (U.S. GAAP), 24–27, 108, 203
    • financial statements, preparation, 104
    • IAS 38, comparison, 6
    • impact, 243–247
  •  
  • Valuation
    • approaches, 51–59
      • data/inputs requirement, 48
    • cost approach, 68t
    • data, interpretation, 257
    • errors, 257–259
    • principles, application, 59–83
  • Value-in-use, 114, 184, 189
  •  
  • Wal-Mart supply chain, inventory management shift, 4
  • Walt Disney Company
    • goodwill/investments, 244–246
    • intangible assets/long-lived assets, 244–246
  • Walt Disney Company, 10-K annual report, 243–247
  • Warehouse contract, value (determination process), 169
  • Website
    • application, infrastructure development stage, 17–18
    • costs, accounting guidance (ASC 350-50), 17
    • hosting, fees, 18
    • operation, software costs, 17
  • Website development, 17–19
    • content development stage, 18
    • graphics development stage, 18
    • operating stage, 18–19
    • planning stage, 17
  • Weighted average cost of capital (WACC), 60, 63t–64t, 65, 83
    • return, required rate (reconciliation), 85t–86t
  • Weighted average return (WARA), 83
  • Without significant penalty, term (meaning), 13
  • Workforce, placement, 226–227
  • Working papers, 237
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