Fair Value Measurement: Practical Guidance and Implementation (Wiley Corporate F&A) - Hardcover

Zyla, Mark L.

Hardcover

ISBN 10: 1119191238 ISBN 13: 9781119191230

Publisher: Wiley, 2020

Synopsis

Get up to date on the latest FASB, SEC, and AICPA guidelines and best practices

Fair Value Measurement provides hands-on guidance and the latest best practices for measuring fair value in financial reporting. The Financial Accounting Standards Board (FASB), the U.S. Securities and Exchange Commission (SEC), and the American Institute of CPAs (AICPA) have all updated their guidelines for practitioners, and this book details the changes from a practical perspective. This new third edition includes a discussion on Private Company Council accounting alternatives for business combinations and impairment testing, with a detailed example of the Market Participant Acquisition Premium (MPAP), including European and Asian examples and expanded discussion of IFRS.

Fair value measurement guidelines continue to evolve, and this comprehensive reference provides a valuable, up-to-date resource for preparers, auditors, and valuation specialists.

• Adopt the best practices for implementing the FASB's Topic 820
• Learn the latest reporting requirements for fair value measurements
• Understand accounting alternatives for business combinations

• Examine the details of MPAP in Europe and Asia

Applying fair value measurements to financial statements requires a move away from rules-based standards and toward application of professional judgment. This controversial shift has led to a reliance on valuation specialists, who face their own challenges in applying Topic 820 amidst an economic downturn and recovery, leading to an ever evolving set of best practices. Practitioners must stay up to date, and be aware of the changes as they occur. Fair Value Measurement provides the most recent information and a practical approach to this area of financial reporting.

About this title

About the Author

MARK L. ZYLA is a Managing Director of Zyla Valuation Advisors, LLC. an Atlanta, Georgia based valuation and litigation consultancy firm. He is a Certified Public Accountant, Accredited in Business Valuation (CPA/ABV), Certified in Financial Forensics (CFF) by the American Institute of Certified Public Accountants (AICPA), a Chartered Financial Analyst (CFA), and an Accredited Senior Appraiser with the American Society of Appraisers certified in Business Valuation (ASA).

Mark is the Chairman of the Standards Review Board of the International Valuation Standards Council (IVSC) and has served on the AICPA's Forensic and Valuation Services Executive Committee. Mark was inducted into the AICPA Business Valuation Hall of Fame in 2013.

From the Back Cover

The most recent developments and best practices for applying fair value measurement in financial reporting

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have brought fair value measurements in financial reporting together through the issuance of parallel statements. This move away from traditional measurements under accounting standards requires a degree of professional judgment, often provided by an outside valuation specialist. Financial executives, valuation specialists, and auditors need to be aware of the latest requirements for applying fair value measurement to financial statements.

The Third Edition of Fair Value Measurement brings together best practice accounting and valuation guidance on relevant FASB Accounting Standards Codification (ASC) standards, such as ASC 820, Fair Value Measurements. This fully updated edition offers new and revised coverage of Private Company Council (PCC) accounting alternatives for business combinations and impairment testing, the latest on testing for impairment of goodwill for public entities, the application of the Market Participant Acquisition Premium (MPAP), fair value measurement of portfolio investments, and expanded discussion of fair value measurements under International Financial Reporting Standards (IFRS).

From the Inside Flap

Fair value accounting has changed how financial information is reported. Fair value is now often used as a basis of measurement for reporting for financial and non-financial assets and liabilities. As the amount of financial statement information measured at fair value under U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) continues to increase, so does the need for experienced and knowledgeable valuation specialists and auditors. This new edition of Fair Value Measurement: Practical Guidance and Implementation covers the history and evolution of fair value accounting, newly implemented accounting standards and best practices, fair value measurement standards and concepts, and more.

This fully revised and updated guide includes substantial new content and examples. In-depth chapters examine an inclusive range of important topics, while helping improve understanding of measuring fair value. The book begins by looking at the history and development of fair value accounting, current trends that affect fair value measurement, and how the once proposed convergence of U.S. GAAP with IFRS has influenced fair value concepts. An overview of fair value measurement in U.S. GAAP, including cross-references to FASB ASC 820, introduces important fair value framework concepts, Uniform Standards of Professional Appraisal Practice (USPAP) and International Valuation Standards (IVS). A chapter examining accounting standards for business combinations is followed by chapters on intangible assets, intellectual property, and testing goodwill for impairment under different accounting standards.

Various approaches to fair value measurement are explained in detail over the next several chapters. Hands-on examples demonstrate various methods and techniques for applying the cost approach to measure contributory assets, the market approach for measuring the fair value of certain intangible assets, and income approach methods used in business combinations. Subsequent chapters cover advanced valuation techniques, auditing fair value measurement, contingent consideration, and alternative investments. The closing chapter of the book provides a new case study illustrating the measurement of fair value for intangible assets, including a question and answer section that highlights important concepts.

Despite some challenges, such as the potential for reporting bias, fair value measurement significantly increases public trust in financial reporting. The goal of Fair Value Measurement: Practical Guidance and Implementation is to help overcome such challenges and assist valuation professionals to navigate the move towards fair value as the fundamental basis for accounting in the future.

Edition details

• Publisher: Wiley
• Publication date: 2020
• Language: English
• ISBN 10: 1119191238
• ISBN 13: 9781119191230
• Binding: Hardcover
• Edition number: 3
• Number of pages: 512