The valuation industry has experienced a significant increase in time allocated to auditors in the review process.
Identifying and valuing intangible assets in advance of a purchase has become a valuable step in the due diligence process.
Under SFAS 141R, there will be greater time pressure. SFAS 141 allowed a company one year to complete its purchase accounting.
Obtaining an objective valuation is a key component of the restructuring process.
Perhaps the most significant difference in approach relates to the way in which contingent liabilities assumed in a business combination are reported.
One of the most controversial parts of SFAS 141(R) deals with accounting for contingent assets/liabilities.
The challenge in arriving at fair value is often one of balancing current market conditions with appropriate assumptions.
Multinational companies face several compliance and planning issues.
In the original Practice Aid, there was no mention of the back-solve approach. Since then the technique has come into widespread use.