Fair Value: Friend or Foe?
One of the financial reporting methods that businesses can choose today is Fair Value accounting. It provides precise valuation, accurate income measurement, and maximized chances for businesses to survive in an unmanageable economy. It is also considered as the most agreed upon accounting standard. However, Fair Value accounting requires that assessments of the fair value of assets and liabilities be updated to reflect changes in intrinsic value and market conditions. The reliance on valuations in accounting statements creates inherent uncertainty and raises numerous issues.
Though beneficial, adoption of Fair Value by companies should be well thought of because it entails a number of detrimental effects which should be given substantial consideration. It is worthy to note that Fair Value accounting is causing significant implications in several areas including increased accounting-related litigation, particularly securities class actions. A huge number of securities class actions featuring fair-value-related claims have already been brought against financial institutions.
In this two-hour LIVE Webcast, a panel of key thought leaders and professionals assembled by The Knowledge Group will provide the audience with an in-depth discussion of Fair Value accounting with an emphasis on its pros and cons to help them manage benefits and, eventually, outweigh risks. Speakers will also offer best compliance practices to maximize benefits for companies and discuss aspects of valuation techniques of interest to valuation professionals and anyone who relies on valuation analyses in their own work.
Key topics include:
- Fair Value Measurements and Reporting Overview
- Fair Value Pros and Cons
- Notable Cases
- Regulatory Updates
- Best Compliance Practices
- Uncertainty in Valuations
- Quantifying the Value of Control
Dirk Van Dyke, ASA, MSBA, Director
- Improving Fair Value Estimates
- AICPA, ASA, Canadian ASA group requirements on fair value valuations
- Fair Value Measurements and Reporting Overview
David McKnight, Senior Associate
The Brattle Group
- Sources of uncertainty in estimates of fair value
- Reasons for viewing market values as random variables instead of point estimates
- Methods of dealing with uncertainty
Florin Dorobantu, Senior Associate
The Brattle Group
- Applicability of control premiums and minority discounts in valuation
- Acquisition premiums and the value of synergies
- Considerations related to estimating the value of control
Who Should Attend:
- Business Officers
- Financial Directors/Analysts
- Valuation Analysts
Mr. David McKnight is a financial economist and Senior Associate with The Brattle Group in New York. He has 16 years of experience in economic consulting and specializes in litigation pertaining to valuation, securities, and finance. David has helped prepare expert reports and testimony for U.S. federal and state courts, has provided expert testimony in a FINRA arbitration, and has assisted companies in setting liability reserves for financial accounting. He has extensive experience in valuation and has valued going concerns as well as specific assets and liabilities including complex derivatives and product liabilities. David holds a MS in Mathematics and an MBA from New York University. Prior to joining Brattle, he was a Consultant at NERA Economic Consulting.
Mr. David McKnight is a financial economist and Senior Associate with The Brattle Group in New York. He has 16 …
Dr. Florin Dorobantu is a financial economist and Senior Associate with The Brattle Group in New York. He specializes in valuation and structured finance issues with a focus on international arbitration. Florin has prepared expert testimony on damages in cases before the International Centre for the Settlement of Investment Disputes (ICSID), the Permanent Court of Arbitration, and the International Chamber of Commerce (ICC) and has advised clients in numerous arbitration proceedings as well as in litigation cases in U.S. federal, state, and tax courts. He has performed valuation analyses in multiple industries, including mining, oil and gas, financial institutions, large-scale construction and engineering, and food and beverage. Florin holds a MA and a PhD in economics from Duke University.
Dr. Florin Dorobantu is a financial economist and Senior Associate with The Brattle Group in New York. He specializes in …
Dirk is Managing Director for Armanino’s Valuation Services Practice, with more than 20 years of experience in the business valuation arena. Additionally, he has been valuing technology companies in Silicon Valley since 1994, and has performed more than 1,000 valuations.
Dirk’s expertise focuses on software, life sciences, telecommunications and green industries. He has valued intangible assets such as developed and in-process R&D, customer contracts and relationships, patents, trade names, licensing agreements and covenants not-to-compete. Dirk also developed complicated models for valuations of different forms of equity for companies with complex capital structures.
He co-authored a book on business valuations published by McGraw-Hill, and has prepared/given a number of presentations on tech company valuations, IRS Code Section 409A and SFAS 123R.
Dirk received his BA in Economics from John Hopkins University and his MS in Business Administration from the University of California, Berkeley. He also completed coursework for and passed the qualifying exam for a PhD in Accounting from the Haas School of Business at UC Berkeley.
Dirk is Managing Director for Armanino’s Valuation Services Practice, with more than 20 years of experience in the business valuation …
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About The Brattle Group
The Brattle Group provides consulting and expert testimony in economics, finance, and regulation to corporations, law firms, and governments around the world. We aim for the highest level of client service and quality in our industry.
We advise clients and provide expert testimony in a range of matters involving alleged violations of federal securities laws. Our experience includes work in class actions, derivatives, executive compensation, stock options, asset-backed securities, ERISA actions, breach of fiduciary duty, valuation, and bankruptcy. Our expertise is grounded in a thorough understanding of finance and economic theory, accounting, financial products, capital markets, regulation, and industry custom and practice.
Our principals and academic advisors have wide ranging academic qualifications and industry experience. We also draw on a broader network of leading academic and industry experts to meet the needs of particular cases.
About Armanino LLP
Armanino LLP is the largest independent accounting and business consulting firm based in California. They are a nationwide leader in serving privately-held companies, as well as, nonprofit organizations and public entities. They provide three main areas of service – assurance/audit, tax and consulting. Their technology focus and global services are key aspects of our service lines. They work with clients in a large range of industries including technology, manufacturing, and distribution, consumer-retail, nonprofit, private schools, real estate, professional services, life sciences, insurance and healthcare.
Their offices are located in California, the West and Mid-West regions of the U.S. and their consultants are on the ground at key locations across the Nation. They provide global services in more than 100 countries through our membership in Moore Stephens International Limited – one of the world's major accounting and consulting organizations.