The Global Financial meltdown had ushered in a flurry of goodwill impairment activity this year and some experts think this could get even worse in Q4. Most North American firms have opted to “take the pain” via a full impairment charges all at once while their European counterparts have decided to whittle it down via many smaller charges hoping for a market rebound. It’s believed that US companies are taking the one time hits mainly because of possibility of SEC enforcement action. In any event, it’s clear on both sides of the pond that with values declining and the cost of refinancing steadily rising, valuations is a tough business.
The Knowledge Group is putting together a panel of distinguished professionals and experts who will help examine the approaches including the good, the bad, & the ugly of each. Join this live webcast to gain a more comprehensive understanding of the issues surrounding goodwill impairment in these turbulent financial times.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
Important Note: Your State Bar or Accounting Board will make the final determination with respect to continuing education credit. If you are applying for CLE credit in Texas you must register 20 days before the event date or you will not be able to obtain CLE credit.
Advance Preparation: Print and review course materials
Course Code: 093924
David C. Dufendach, CPA/ABV, ASA
Partner, Valuation Services
Joel Trotter
Partner
Paul Flignor
Principal Economist
David C. Dufendach, CPA/ABV, ASA, Partner, Valuation Services, Grant Thornton LLP
- ASC Topic 350 (formerly SFAS 142) calls for goodwill to be assigned to one or more reporting units, and tested for impairment at least annually; more frequent testing may be
necessary if certain “triggering events” occur
- Goodwill is the final asset tested for impairment; it is done only after the carrying values of all other assets have first been properly adjusted
- Testing for impairment of goodwill is a two-step process
- The lessons of 2008 should be institutionalized:
- Forecasts must be well-supported
- Reporting unit valuations should employ best-practice methodologies
- Valuation techniques should maximize the use of observable market inputs (in accordance with SFAS 157)
- For some companies, the worst may be over – those that recognized impairment losses in 2008 may be positioned to support remaining goodwill
Joel Trotter, Partner, Latham & Watkins LLP
- Why impairment issues matter now
- SEC disclosure issues
- Recommended steps to consider
Paul Flignor, Principal Economist, DLA Piper
- Credit crisis has made this recession different from other downturns - lack of transactional data, etc.
- Income forecasts for intangible assets require recalibration, commonly referred to as 'grounding'
- Discount rate models require rethinking - traditional WACC formulas broke down
- Various methods to adjust discount rates for intangible assets need to be considered
- Financial Executives
- Valuation Lawyers
- Consultants and Accountants in Financial Planning and Accounting
- Industry Experts and Analysts in Business Valuation
This is a must attend event to anyone interested in having full understanding Goodwill Impairment.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A