A practical foundation to fair value for corporate financial officers and auditors, Executive's Guide to Fair Value: Profiting from the New Valuation Rules covers everything executives need to know about fair value.
Executives Guide to Fair Value: Profiting from the New Valuation Rules takes a complex topic and demystifies it with practical advice and helpful knowledge, guiding executives with a trusted reference on the nuts-and-bolts of fair value financial disclosure. This one-stop resource helps readers become familiar with the new rules of fair value and the impact these rules will have on both preparers and users of financial statements.
What Is Fair Value? 1
FASB Is Pushing Fair Value 3
Financial Instruments and the Legacy of Enron 3
Theoretical Merits of Fair Value Accounting 5
Fair Value Is the New Paradigm 6
Deal Expenses 13
Managing Earnings: The Potential for Manipulation 15
Ch. 2 Valuation of a Business: What Is It Really Worth? 19
Fundamental Basis of All Values 22
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) 29
Myth of Comparable Companies - Making Adjustments 30
Definition of a Business 31
Valuing a Start-Up (Early-Stage) Business 32
Misuse of Valuation Reports 35
Business Enterprise Valuations (BEVs) 37
Ch. 3 Litigation and the "True" Determination of Value 40
Valuation for Divorce Proceedings 40
Appraisal Reports that Are "Made as Instructed" 44
Audience for Appraisal Reports 46
Buy and Sell Agreements 52
Don't Use a Formula! 55
Periodic Valuations of Partnerships, Joint Ventures, and Closely Held Companies 56
Ch. 4 Accounting For Merger-and-Acquisition Transactions 58
SFAS 141: Allocation of Purchase Price 58
Fair Values Impact Future Reported Income 61
Market Participants 63
Choice of Life for Amortization and Depreciation