Advanced Applications

Financial Reporting Standards (GAAP)(FRSG)—Art of the Deal

Thursday, June 6
10:10 a.m.–11:50 a.m.
2 hours CPE
This session will discuss the key issues relating to financial reporting under the IFRS and the measurement of fair value. Attendees will obtain fundamental exposure to—and insights into—the complexities of purchase price allocations in mergers and acquisitions/business combination transactions, tangible asset appraisals, and accounting/reporting for asset impairment; both tangible as well as intangible.

After completing this session, attendees will be able to:

• Define the international reporting standards on various assets and fair value measurement and to be able to apply the standards
• Summarize asset purchase price allocation and carrying value impairment considerations
• Explain a 30,000-foot fundamental overview of U.S. and international accounting standards; financial and tax
• Analyze a hands-on case study through interactive learning of M&A purchase price allocation and tangible asset valuation basics
• Define the process of allocating the overall purchase price paid in an asset transaction to individual asset categories and assets
• Differentiate primary financial reporting vs. tax standards for PPA and how these differences impact future accounting and reporting, as well as tax obligations
• Recognize opportunities to provide professional services to those with accounting and reporting needs in these areas, including: private equity firms, strategic acquirers, commercial lenders, and capital providers

Total CPE: 2 hours
Field(s) of Study: Accounting—2 hours

Who Should Attend:

CPAs and practitioners

Program Level and Prerequisites:

Overview: Learning activity level that provides a general review of a subject area from a broad perspective.

Advanced Preparation:

None

Tony Wayne

Tony  Wayne

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Rick Gray

Rick  Gray

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Alternative Practice Mechanism to Produce Going-Concern Business Valuation—Moving Beyond Prevailing Practice Mechanisms

Friday, June 7
10:10 a.m.–11:50 a.m.
2 hours CPE
There is a substantial volume of literature covering business valuation methods, but a relatively limited volume of literature covering practice mechanisms that can be used to reconcile materially different going-concern business valuation indications derived from multiple going-concern business valuation methods. The prevailing practice mechanisms focus on ‘averaging’ separate business valuation indications derived from multiple methods and/or ‘informed judgment’ applied without a defined practice framework. Regarding the use of ‘averaging’, leading professional business valuation, accounting organizations and scholars have not produced research supporting its use. IRS Revenue Ruling 59-60 states that “no useful purpose is served by taking an average of several factors.” Regarding the use of ‘informed judgement’, the literature offers no guidance or practice-framework on its application to reconcile materially different going-concern business valuation indications derived from multiple methods.

This session introduces an “Alternative Practice Mechanism” (APM) that is the subject of a Doctoral study being completed by the presenter, Roy Salter. The APM is comprised of procedural, theoretic and mathematical-elements that augment and organize prevailing going-concern business valuation theories and methods that enable going-concern business value indications from multiple methods to be in-sync, while concurrently providing an approach to address those issues introduced in The Dividend Puzzle (Black, 1976). This presentation represents a continuation of the morning session covering the topic of “Reconciling Going-Concern Business Valuation Indications Derived from Multiple Business Valuation Methods”. The purpose of this session is to provide a detailed description of the steps that comprise the APM as implemented through an Excel forecast model (Model) that Mr. Salter will present. Mr. Salter will concurrently and thereafter present several Model Illustrations portraying the application of the APM in differing valuation engagements.

After completing this session, attendees will be able to:

• Describe a comprehensive contextual understanding of financial theory and its applicability to developing defensible going-concern business valuations for clients
• State an introduction to an alternative approach to reconciling the differences in going-concern business valuation arising from multiple methods

Total CPE: 2 hours
Field(s) of Study: Finance—2 hours

Who Should Attend:

CPAs, valuators, practitioners, etc.—anyone interested in developing and advancing their skills for this topic.

Program Level and Prerequisites:

Advanced: Learning activity level most useful for individuals with mastery of the particular topic. This level focuses on the development of in-depth knowledge, a variety of skills, or a broader range of applications.

Advanced Preparation:

None

Roy Salter

Roy  Salter

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