Goodwill and Intangible Asset Impairment: A 2014 Perspective
Overview:
In a two hour live webcast, a panel of thought leaders and practitioners assembled by The Knowledge Group will discuss the significant and latest issues with respect to goodwill and intangible impairment.Key topics include:
- Goodwill and intangible asset impairment: an overview
- Latest issues and its implications
- Significant implications and impacts
- Compliance and best practices
- Latest regulatory updates
Agenda:
SEGMENT 1:
Stephen W. Shulman CPA/ABV, CVA, Partner
Anchin, Block & Anchin LLP
Overview of where we have been, where we are and where we are going
- Understand the relationship between ASC 805 (Business Combinations), ASC 350 (Indefinite Life Intangibles & Goodwill), ASC 360 (PP&E & Finite Life Intangibles)
- Private Company Council (PCC)
- PCC Issue 13-01A
- Accounting for Identifiable Intangible Assets in a Business Combination
- PCC Issue 13-01B
- Accounting for Goodwill Subsequent to a Business Combination
- Issues under discussion by FASB- the Four Views being analyzed
- PCC model
- Amortize Goodwill over expected useful life
- Direct write off
- Simplified impairment test without amortization
- Impairment Deficiencies identified by the PCAOB
- U. S. GAAP & IFRS Differences
- Clashes and minimizing Global Discrepancies
- Impairment Cases in Financial News
SEGMENT 2:
Curt Germany, Jr., Director
CBIZ Valuation Group, LLC
Triggering Events to Qualitative Analysis
- At what level of the organization is impairment tested
- Operating Unit
- Operating Segment
- One level below an operating segment
- Entity when appropriate
- Operating Unit
- When to Test for Goodwill and Indefinite Life Intangible Impairment annually or during the fiscal year
- “Triggering events” for interim testing- facts and circumstances
- May trigger impairment
- Same as the facts and circumstances outlined in Step Zero
- Step Zero – Qualitative Goodwill Impairment Test (ASU 2011-08)
- Objective – reduce complexity of performing Step One of the Goodwill Impairment Test (may bypass and perform Step One)
- Must result in an assessment that is “more likely than not” (>50%) that a reporting unit’s fair value is less than its carrying value to be impaired
- Examples of Events and circumstances that may indicate Goodwill impairment
- General macroeconomic conditions
- Industry and market considerations
- Cost factors
- Decline in financial performance
- Entity-specific events
- Events affecting a reporting unit
- Sustained decrease in share price
- Qualitative factors not intended to be stand alone tests
- Positive mitigating factors can be included
- “Triggering events” for interim testing- facts and circumstances
SEGMENT 3:
Nancy Czaplinski, Senior Managing Director
American Appraisal
and
Carlo Carpino, Managing Director
American Appraisal
Testing for Subsequent Impairment of Fair Value
- Step One – Quantitative Goodwill Impairment Test
- Determine Fair Value of Reporting Unit (ASU 2010-08)
- Compare Fair Value of Reporting Unit to Carrying Value
- Impairment indicated if Carrying Value exceeds Fair Value
- Perform Step Two
- Step Two – Recognition and Measurement of an Impairment Loss
- Order of Testing
- Test long-lived tangible and intangible assets subject to amortization first under ASC 360, if impairment is indicated (Triggering Events)
- Record any impairment, then perform impairment testing under ASC 350
- Goodwill is tested last
- Prospective Information used in Quantitative Test
- Approaches to value (including asst vs stock differences)
- Customer base valuation and additional valuation support requirements
- Relief from Royalty approach for intangibles
SEGMENT 4:
Jim Asher, Chief Operating Officer
Coller IP
A internal corporate, European and UK perspective
- The internal corporate perspective
- UK European- IFRS perspective
- Opportunities to identify new intangibles
Who Should Attend:
- Attorneys and Consultants for Financial Companies
- Financial Executives
- Valuation Analysts
- Other Related/Interested Professionals
Stephen Shulman, CPA/ABV, CFF and CVA is the Co-Practice Leader of Anchin, Block and Anchin’s Litigation, Forensic, & Valuation Services …
Mr. Germany is a director in the Southwest region of CBIZ Valuation Group. He specializes in the valuation of businesses, …
Nancy is a senior managing director of American Appraisal’s financial valuation practice and national director of its solvency and fairness …
Carlo is a director for American Appraisal’s financial valuation practice. He has performed numerous valuations of public and private businesses; …
Jim is the founder, COO, and leads the IP valuation practice of Coller IP. He has over 14 years’ experience …
Course Level:
Intermediate
Advance Preparation:
Print and review course materials
Method of Presentation:
On-demand Webcast (CLE)
Prerequisite:
NONE
Course Code:
144721
NASBA Field of Study:
Accounting
NY Category of CLE Credit:
Areas of Professional Practice
Total Credits:
2.0 CLE
2.0 CPE (Not eligible for QAS (On-demand) CPE credits)
Login Instructions:
No Access
You are not logged in. Please Login or register to the event to gain access to the materials and login instructions.
Unlock All The Knowledge and Credit You Need
Leading Provider of Online Continuing Education
It's As Easy as 1, 2, 3
Get Your 1-Year All Access Pass For Only $199
SPEAKERS' FIRMS:
About Anchin, Block & Anchin LLP
Anchin, Block & Anchin LLP is recognized as a top-tier firm of accountants and consultants nationwide and in the metropolitan New York City area in terms of its size, management, scope of services and work environment. With a staff of approximately 350 and numerous specialized industry and service teams, Anchin provides privately-held and publicly held businesses and high-net-worth individuals with a wide range of traditional attestation and tax services along with non-traditional services including valuation services, litigation support, forensic accounting, merger and acquisition services, wealth management, economic development and tax incentives, and management and succession advisory services.
Website: https://www.anchin.com/
About CBIZ Valuation Group, LLC
CBIZ Valuation Group is a premier, national valuation firm specializing business, tangible and intangible asset valuation, financial advisory and litigation support. We are known for our comprehensive services (financial, real estate, and machinery and equipment), industry expertise (including consumer products, financial services, healthcare, life science, manufacturing, retail, high technology and telecommunications), and professionalism. We offer the utmost level of technical proficiency and maintain the highest valuation standards, making us the choice for independent valuation services.
Website: https://www.cbiz.com/valuationgroup/
About American Appraisal
American Appraisal is an independent global firm providing valuation and related advisory services for business, financial, legal or tax purposes. With a staff comprising 900 employees operating from 24 offices throughout the Americas, Asia-Pacific, Europe and the Middle East, American Appraisal delivers accurate, reliable valuations for financial and tax reporting, fixed asset and risk management, consulting and compliance. American Appraisal’s valuation expertise encompasses all classifications of tangible and intangible assets, and its objective reports withstand scrutiny from regulatory, judicial and taxing authorities.
Website: https://www.american-appraisal.com/AmericanAppraisal.htm
About Coller IP
Coller IP, based in UK near Oxford and in London, specialises in the commercial management of intangible assets for an international client base (www.collerip.com). Coller IP understands that realising value from intellectual property and wider intangible assets is vital to business, and has a vision that IP assets will become fully tradable. The Coller IP in-house team, patent and trade mark attorneys, IP strategists and analysts, valuation consultants and brokers, delivers an integrated commercial service to unlock the potential of IP for its clients.
Website: https://www.colleripmanagement.com/