Testing Indefinite-Lived Intangible Assets for Impairment – The Simplified Approach

On July 27, 2012, the FASB issued Accounting Standards Update (ASU) 2012-02, Intangibles—Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment with the intent of simplifying the impairment testing of indefinite-lived intangible assets and promoting consistency with the goodwill impairment testing.  The revised guidance provides entities with an option to first perform a qualitative assessment to determine whether impairment exists.  If an entity concludes that it is more likely than not that impairment exists, it is required to move on to the quantitative assessment and determine the fair value of the indefinite-lived intangible asset to measure the […] Read more »

Valuation of Privately Held Equity Securities Issued as Compensation

On August 10, 2012, the AICPA issued a working draft of a new chapter of the AICPA Accounting and Valuation Guide Valuation of Privately Held Company Equity Securities Issued as Compensation. The new chapter- chapter 8, Inferring Value from Transactions in a Private Company’s Securities – provides a framework on how to evaluate private transactions and secondary market transactions and their relevance for estimating fair value of the other securities within an enterprise. This new chapter was developed in response to feedback received on the working draft of the guide, which was originally released in March of 2011. In a […] Read more »