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This course provides an understanding of common financial reporting issues faced by management and its auditors when determining the value or price of an asset or liability (“valuation”). While the issuance of ASC 820, Fair Value Measurements, has provided a common financial reporting framework for determining fair value; its principles-based focus has furthered the need for management, auditors and valuation experts to work closely together on valuation issues and exercises.
The Financial Accounting Standards Board (FASB) has recently issued new guidance related to assessing the impairment of goodwill and infinite lived intangible assets. This guidance has initially been well received by the financial reporting community because under certain conditions it replaces the requirement for a quantitative determination with a qualitative assessment. Many well intentioned accountants concluded the guidance was an approval from the FASB to lessen the amount of work previously required when assessing impairment. Accordingly, upon its issuance, many questions have arisen in the financial reporting community centered on the exact intent of the FASB in issuing the guidance. We believe, as with any qualitative determination, it is likely that the depth and quality of the documentation supporting the assessment will be a significant factor in reaching a supportable conclusion on impairment. This course will explore some of the implementation issues that have arisen related to the new impairment guidance.