The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.
For companies who have not filed for bankruptcy, the insolvency exception is critical.
Many companies have already adopted FIN 48 and have turned their attention to the annual disclosure requirements.
The impact of the investor model is that it essentially guarantees a return to the intangibles developer for its efforts.
In general, the impact of a Sec. 338 election is that a stock acquisition is treated as an asset acquisition.