Foundations of Fair Value Measurement

Fair value measurements overview

In today’s modern business environment, the need for fair value measurements is ubiquitous. You’ll gain a fundamental understanding of fair value measurements by examining various topics that include:

• Definition of fair value
• Fair value measurement concepts
• Inputs to fair value measurements
• Fair value hierarchy

Breaking down the fair value measurement approaches

You’ll learn about three common approaches to fair value measurements. In doing so, you’ll look at the methods within each approach and the types of assets or liabilities to which each method is typically applied. Particularly, you’ll dive into ways to value intangible assets, including:

• Intellectual property
• Trade names and copyrights
• Goodwill

Realistic examples and scenarios

You’ll walk through realistic examples to ensure you understand how to apply the concepts you learn with the help of a knowledgeable instructor.

Who Will Benefit

• Business valuation professionals who value financial and nonfinancial assets and liabilities that are measured in accordance with FASB ASC 820, Fair Value Measurement, or IFRS 13, Fair Value Measurement.
• CPAs and accounting and finance professionals preparing for the ABV exam.
• Accounting and finance professionals who serve as advisers and service providers.

Key Topics

• Fair value measurements overview
• Valuation considerations
• Business combinations
• The cost, market and income approaches
• Testing for subsequent impairment
• Valuations of privately held company equity securities
• Regulatory environment
• Audit consideration

Learning Outcomes

• Recognize the changing economic and regulatory environment and its impact on financial accounting standards.
• Recognize the framework for measuring fair value as required by FASB ASC 820, Fair Value Measurement.
• Identify areas in fair value measurement that may be subjective.
• Recognize the relationship between FASB ASC 805, Business Combinations, and the subsequent testing for impairment of assets under FASB ASC 350, Intangibles-Goodwill and Other, and FASB ASC 360, Property, Plant, and Equipment.
• Recall the purpose and primary goal of the Performance Framework for valuation specialists.
• Recognize how individual intangible assets create value.
• Identify techniques under the cost, market and income approaches in measuring fair value.
• Recall factors to consider when evaluating the useful life of an intangible asset.
• Recall the principles highlighted in the auditing standards as they relate to fair value measurement.