Archive 2010-32: Fair Value Methods and Processes Update




Fair Value Methods and Processes Update: Engagement Flowcharts and Checklist Business Combination Case Study

presented by
Mike Mard, CPA/ABV/CFF, ASA, Moderator with Steve Hyden, CPA/ABV, ASA
Webinar 32 Broadcast Date: December 21, 2010

Mike Mard, Steve Hyden, and Jim Hitchner have just published the third edition of Valuation for Financial Reporting: Fair Value, Business Combinations, Intangible Assets, Goodwill and Impairment Analysis (Wiley &
Sons, Inc.) and will share what’s new and important in fair value engagements for business combinations.

The main highlights of this session are the presentation of valuation engagement process flowcharts for Fair Value andBusiness Combinations and the valuation of and the interrelationship of the following intangible assets: Customer Relationships, Trade Names and Existing and In-Process Technology.


  • VPS webinar power point slides
  • Process flowcharts for Fair Value and Business Combinations
  • Fair value measurement checklist
  • Various articles

Learning Objectives:

  • The participant will be updated on new thinking and concepts concerning the valuation of intangible assets in a business combination
  • The participant will learn about employing processes and checklists in fair value engagements
  • Using actual examples, applications and models for the valuation of three important intangible assets:
    • Customer Relationships
    • Trade Names
    • Existing and In-Process Technology
  • The participant will learn the choices and industry guidance for using the Multi-Period Excess Earnings Method when valuing two critical intangible
    assets by the income approach

Webinar Outline:

  • Engagement processes
    • Identification and recognition of key issues
      • Determine Subject of Valuation
      • Determine Principal or Most Advantageous Market
      • Determine Market Participant Assumptions
      • Discuss and interpret:
        • Highest and best use
        • Premise of value
      • Disclosure levels and fair value hierarchy
  • Valuing customer relationships
    • Income approach
    • Supporting key assumptions
      • Turnover
      • Revenue
      • Sales and marketing expenses
      • Contributory asset charges
      • Discount rate
    • Example using Multi-Period Excess Earnings Model
      • Choices and guidance on valuing two critical assets using the income approach
  • Trade names
    • Valuation methods
    • Determining and supporting inputs
    • Credibility of royalty databases
  • Technology
    • Developed technology
    • In-process research and development
    • Valuation methods
    • Example using an income approach
  • Additional discussion points
    • How to prevent double counting cash flows
    • Use of the tax amortization benefit
    • Logic checks in analyzing intangibles and tying it together
    • Hot points in audit reviews

Included in this downloadable package are:

  • Audio/Video file
  • Webinar transcript
  • Original Webinar handouts

The archived webinar package is an Adobe Presenter PDF file that allows you to view the video of the webinar with the synced audio so that you see the presentation just as it was presented “live.” The Presenter format also allows for easy navigation through the webinar so you can quickly go to a specific section in the presentation. The handout materials are included in the file. To view the Webinar Presenter file, you must have Adobe Reader software version 9 or higher. You can download the free current version of Adobe Reader at Please note that CPE is only available for live webinar broadcasts.

Additional information

Weight 0.00 oz