Topics include: "Fair Value Defined," "The Market Participant Perspective," "The Fair Value Hierarchy," "Markets That Are Not Active & Transactions That Are Not Orderly," "Practical Expedient for Investments in Funds That Report NAV," and "Disclosure Requirements"
Assurance and advisory firm Nkonki will be hosting a roundtable session exclusively for CFOs with Darrel Scott, Board Member of the IFRS Foundation. Scott, who is in Johannesburg for the occasion, will provide global and industry insights on the newly-released IFRS 16, issued on 13 January 2016, to CFOs from many of South Africa’s leading companies.
“The session is designed to share insights and deliberate on how this new accounting standard will impact processes and financial reporting, and how industries across the globe will deal with this change,” says Sindi Zilwa, CEO of Nkonki. It will also provide an update on accounting developments in the medium term.
The International Accounting Standards Board (IASB) issued IFRS 16 Leases in January 2016. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, namely, the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective from 1 January 2019. IFRS 16 completes the IASB’s project to improve the financial reporting of leases. IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations.
Mercer Capital | Best Practices: Fair Value ManagementMercer Capital
Topics include: Best Practices for Valuing Illiquid Portfolio Assets, Fair Value Measurement, Valuation Methods, Valuing Fund Interests, Mezzanine Loans, GIPS Valuation Hierarchy, International Private Equity and Venture Capital Valuation Guidelines (December 2012), CFA Institute Global Investment Performance Standards (2010)
Before going to market to sell your business, you or your executive team may want to obtain an independent appraisal. Likewise, prospective buyers may wish to obtain expert services to value an acquisition target or discrete portions of a target. This webinar provides a look into how valuation experts place a value on a going concern.
Part of the webinar series: Valuation 2021
Assurance and advisory firm Nkonki will be hosting a roundtable session exclusively for CFOs with Darrel Scott, Board Member of the IFRS Foundation. Scott, who is in Johannesburg for the occasion, will provide global and industry insights on the newly-released IFRS 16, issued on 13 January 2016, to CFOs from many of South Africa’s leading companies.
“The session is designed to share insights and deliberate on how this new accounting standard will impact processes and financial reporting, and how industries across the globe will deal with this change,” says Sindi Zilwa, CEO of Nkonki. It will also provide an update on accounting developments in the medium term.
The International Accounting Standards Board (IASB) issued IFRS 16 Leases in January 2016. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, namely, the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective from 1 January 2019. IFRS 16 completes the IASB’s project to improve the financial reporting of leases. IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations.
Mercer Capital | Best Practices: Fair Value ManagementMercer Capital
Topics include: Best Practices for Valuing Illiquid Portfolio Assets, Fair Value Measurement, Valuation Methods, Valuing Fund Interests, Mezzanine Loans, GIPS Valuation Hierarchy, International Private Equity and Venture Capital Valuation Guidelines (December 2012), CFA Institute Global Investment Performance Standards (2010)
Before going to market to sell your business, you or your executive team may want to obtain an independent appraisal. Likewise, prospective buyers may wish to obtain expert services to value an acquisition target or discrete portions of a target. This webinar provides a look into how valuation experts place a value on a going concern.
Part of the webinar series: Valuation 2021
This presentation will also provide a year end update of the technical accounting standards (ASU’s), proposed standards that are in Exposure Drafts (ED’s), and the projects of the FASB going forward.
During the presentation attendees can expect to learn the following:
Gain an understanding of the most significant changes in accounting standards over the past 12 months
Become familiar with the proposed changes that the FASB has issued in Exposure Drafts
Acquire knowledge of the big projects that the FASB will address next
After this webinar attendees will be able to answer:
What changes has the FASB made over the past year?
How will these changes impact you and your organization?
What areas will the FASB focus on next?
Complete guide to Building an Acquistion Strategy and Valuation MethodologiesSTRATICX
DESCRIPTION
For a business any business looking to engage in acquisition activity it is critical to understand what your strategy is. Acquisition and investment is more than a financial exercise, there has to be a strategy intent as well.
This document is in three main sections to help formulating an acquisition strategy:
1. Identifying the Acquisition Target and Process
2. Diligencing the Target
3. Evaluating Other Strategic Considerations
Followed by a overview of valuation methodologies commonly used to value targets:
1. Public Market Comparables
2. Merger Market Comparables
3. DCF
4. Pro Forma
This powerpoint is designed to give a good foundations and building blocks for those interesting in learning more about the above techniques.
Partner Janice Snyder discussed the recent changes made by the Financial Accounting Standards Board and how those changes will impact you and your organization.
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Valuation Principles & Techniques in Ind AS at a seminar organised by Gurgaon Branch of ICAI on 3rd September, 2016.
IndAS113 prescribes Fair Valuation definition, Techniques, Application and its Hierarchy. About 75% of the Balance Sheet Size is expected to change due to Fair Value Accounting (#IndAS109 #Financial Instruments, #IndAS102 #Share based payments, #IndAS16 Property Plant Equipments (PPE), #IndAS103 #Business combination etc. shall be impacted using #FairValue. Time to get ready, Plan Prepare and Align with the new requirements...
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
IA Watch/Assette: Advertising & Marketing Compliance Webinar on 1/26/16 Assette
IA Watch and Assette webinar entitled, “Advertising & Marketing: Best Practices to Tackle This Perennial Challenge and Avoid Compliance Missteps” on Tuesday, January 26, 2016.
Hear critical do’s and don’ts to keep your firm on the right side of Commission advertising rules (and its many no-action letters).
* The often-blurred lines drawn by the SEC’s advertising and marketing rules.
* How to mitigate risks when marketing materials are coming from many all over the firm.
* Ways automation can minimize marketing operational, regulatory and reputational risks.
Valuation Issues in Developing and Executing Buy-Sell AgreementsSkoda Minotti
A buy-sell agreement is one of the most common tools utilized by attorneys and business advisors in protecting their business owner clients. In this course, you will learn about valuation issues that are critical to buy-sell agreements, such as the use of formulas and valuation discounts, which can significantly impact your client if and when the agreement is triggered.
Similar to Mercer Capital | An Overview of ASC 820: Fair Value Measurement (20)
Mercer Capital's Bank Watch | September 2023 | The Interest Rate Environment ...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Investment Management Industry Newsletter | Q2 2023 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Bank Watch | July 2023 | Bank Impairment TestingMercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2023 |Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
Mercer Capital's Value Matters™ | Issue No. 1, 2023 Mercer Capital
Mercer Capital's Value Matters™, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Mercer Capital - Corporate Finance in 30 Minutes Whitepaper.pdfMercer Capital
Corporate finance does not need to be a mystery. In this whitepaper, we distill the
fundamental principles of corporate finance into an accessible and non-technical
primer. Structured around the three key decisions of capital structure, capital
budgeting, and distribution policy, the guide is designed to assist family business directors and shareholders without a finance background make relevant and
meaningful contributions to the most consequential financial decisions all companies must make. Our goal with this whitepaper is to give family business directors
and shareholders a vocabulary and conceptual framework for thinking about strategic corporate finance decisions, allowing them to bring their perspectives and
expertise to the discussion.
Mercer Capital's Bank Watch | March 2023 | “I’m Not Broke. I’m Just Not Liquid.”Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Bank Watch | February 2023 | Themes from Bank Director’s 202...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Investment Management Industry Newsletter | Q4 2023 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Value Focus: Exploration and Production | Fourth Quarter 202...Mercer Capital
Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes a macroeconomic trends, industry trends, and guideline public company metrics.
Mercer Capital's Bank Watch | December 2022 | Bank M&A 2022 - TurbulenceMercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Value Matters™ | Issue No. 3, 2022|Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Mercer Capital's Value Focus: Transportation & Logistics | Q3 2022 Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
Mercer Capital's Bank Watch | November 2022 | Community Bank Loan Portfolios ...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Investment Management Industry Newsletter | Q3 2022 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Investment Management Industry Newsletter | Q2 2022 | Segmen...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Bank Watch | October 2022 | How Are Tech-Forward Banks Perfo...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Mercer Capital's Value Focus: Transportation & Logistics | Q2 2022 | Feature...Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
2. 2
Presentation
Outline
01. Fair Value Defined
02. The Market Participant Perspective
03. The Fair Value Hierarchy
04. Markets That Are Not Active & Transactions
That Are Not Orderly
05. Practical Expedient for Investments in Funds
That Report NAV
06. Disclosure Requirements
4. 4
The FASB believes that, in order to be
useful, accounting information should be
both relevant and reliable
The
Fair Value
Objective
Reliability
Historical Cost
Relevance
Fair Value
5. 5
The
Fair Value
Definition
Fair value is the price that would be
received to sell an asset or paid to
transfer a liability in an orderly
transaction between market
participants at the measurement
date.
8. 8
Market
Participants
Market Participants are buyers or sellers
in the principal or most advantageous
market who are:
• Independent of the reporting entity
• Knowledgeable about the asset and
the transaction
• Able to transact
• Willing to transact
Fair value of an asset shall be determined
based on the assumptions that market
participants would use in pricing the asset
10. 10
The
Fair Value
Hierarchy
Observable Inputs
Based on market data obtained from
sources independent of the reporting entity
Unobservable Inputs
Reflect reporting entity’s own assumptions
about the assumptions market participants
would use
11. 11
Fair Value
Hierarchy:
Input Quality
Level 1
• Direct (unadjusted) quoted price from an
active market for identical assets
Level 2
• Quoted prices for similar assets
• Other observable inputs (interest rates,
yield curves, etc.)
Level 3
• Unobservable inputs not derived from the
market
12. 12
Common
Level 3
Inputs
• Cash flow forecasts for private companies
• Default probabilities and loss severities for
private placement debt or asset-backed
securities
• Growth expectations (revenue, earnings,
etc.)
• Required returns on illiquid investments
• Anticipated holding periods for illiquid
investments
14. 14
Measuring Fair
Value When
Market Activity
Has Significantly
Decreased
Regardless of volume, objective is still to
determine FV at the measurement date under
current market conditions
• FV is a market-based measurement, not an entity-
specific measurement
• If volume has decreased significantly, judgment is
required when adjusting observed transaction prices
• Although potentially difficult to estimate, applicable
risk premiums to reflect uncertainty must be
considered
• The degree of difficulty in estimating a risk premium
is not a sufficient basis for not applying a risk
premium
15. 15
Factors Suggesting
Market Activity Has
Significantly
Decreased
• Few recent transactions
• Price quotes not developed using current
information
• Price quotes vary substantially
• Reduction of historical correlations
• Significant increase in implied liquidity
premiums, etc. compared to reporting entity’s
estimate of expected cash flows
• Widening bid-ask spreads
• Curtailment of primary market for similar
instruments
• Little information publicly available
16. 16
Measuring
Fair Value When
Market Activity
Has Significantly
Decreased:
Example
Illustrative FV yield determination (Example 8
from ASC 820)
• Build-up (discount rate adjustment) technique
indicates yield of 12%
• FV measurement also considered indicative
(nonbinding) quotes implying yields of 15% to 17%
• Concluded FV yield was 13%
Discount Rate Adjustment
Benchmark Risk-Free Rate
At the measurement date
3.00%
Original Credit Spread
Based on pricing at issuance
2.50%
Est. Spread on Widening Since Origination
Based on performance of relevant index
7.00%
Basis Adjustment for Index
Observed in most recent transaction
-3.50%
Liquidity Risk Premium
Measured Relative to Index Liquidity
3.00%
Indicated Yield 12.00%
17. 17
Transactions
That Are
Not Orderly
Indicators that a transaction was not orderly:
• Not adequate exposure to the market for
usual and customary marketing activities
• Seller marketed the asset or liability
to a single market participant
• Seller in or near bankruptcy, or under other
regulatory or legal requirements
to sell
• Transaction price an outlier compared to other
recent transactions for the same or similar
asset or liability
18. 18
Weighing Reported Transactions
Does the reporting entity have
sufficient information to
conclude whether observed
transaction is orderly?
Consider the transaction,
but give less weight than
otherwise
Was the transaction
orderly?
Place little, if any, weight
on the transaction
Give weight to transaction,
considering volume,
comparability, and timing
Yes
No
No
Yes
20. 20
Funds Within
Scope of
Provision
Investment Company attributes (946-10-15-2):
• Primary business is investing in assets for
current income, appreciation, or both
• Ownership represented by units of investment
to which proportionate share of net assets can
be attributed
• Funds of owners are pooled to facilitate access
to professional investment management
• Is the primary reporting entity
“Venture capital investment companies, including small
business investment companies and business
development companies” fall within the ambit of the
investment company definition
21. 21
Availability of
Practical
Expedient
Practical expedient for fair value
measurement of ownership interests in
an investment vehicle if:
• The ownership interests do not have
readily determinable fair value
• The vehicle possesses all of the attributes
of an investment company, or the industry
practice relevant to the vehicle is
consistent with the reporting practices
required of investment companies
22. 22
Practical
Expedient:
Using Reported
NAV
As a practical expedient, the fair value of an
interest in an investment vehicle may be
estimated using net asset value per share
reported by the company, provided:
• Calculation of the reported net asset value is
consistent with fair value measurement
principles (pursuant to ASC 946 Financial
Services – Investment Companies)
• Net asset value per share was obtained at the
measurement date
Adjustments to reported net asset value may be
appropriate if the preceding conditions are not
met
23. 23
Exception to
Practical
Expedient
The practical expedient is not available if
it is probable that an interest in the
investment company will be sold for a
price that is different from reported net
asset value
A sale is probable if:
• Management decides on a plan to sell the
interest
• Process of searching for buyers has begun
• The interest is available for immediate sale
• Significant changes to the plan are unlikely and
the plan will not be withdrawn
25. 25
Disclosure
Requirements:
Recurring
Measurements
For all recurring fair value measurements:
• The valuation techniques and inputs used
• If the use of unobservable inputs is significant to the
valuation, the effect of the measurement on earnings
and comprehensive income for the period
Due consideration to be given to:
• Level of detail necessary to satisfy disclosure
requirements
• How much emphasis to place on each requirement
• How much aggregation or disaggregation to undertake
• Whether users of financial statements need additional
information to evaluate quantitative disclosures
26. 26
Disclosure
Requirements:
Recurring
Measurements
For all recurring fair value measurements:
• The fair value measurement at the end of
the period
• The level of the fair value hierarchy within
which the fair value measurements are
categorized in their entirety
• Amount of transfers between Levels 1 and
2, reason for the transfers, and the policy
for determining when transfers are
deemed to have occurred
27. 27
Disclosure
Requirements:
Recurring
Measurements
(Levels 2 & 3)
For changes in valuation technique:
• Reasons for the change in technique
• For Level 3 measurements, quantitative
information about the significant
unobservable inputs used in the fair value
measurement
If the highest at best use of a nonfinancial
asset differs from current use:
• Disclose the fact, and;
• Explain why the asset is being used in a
manner other than its highest and best
use
28. 28
Disclosure
Requirements:
Recurring
Measurements
(Level 3)
For measurements using significant Level 3
inputs:
• Beginning balance
• Total gains or losses (both realized and
unrealized)
• Purchase and sales of assets
• Transfers in and/or out of Level 3
• Amount of total gains or losses included in
earnings attributable to unrealized gains or
losses
• A description of the valuation processes used
• A narrative description of the sensitivity to
changes in unobservable inputs, including
interrelationships, if any, among inputs
29. 29
Disclosure
Requirements:
Investments in
Entities that
Calculate NAV
Required disclosures for interests in
investment companies:
• Fair value of interests by major category,
including description of corresponding
investment strategies
• For interests that cannot be redeemed,
expected liquidation period of underlying assets
• Unfunded commitments related to interests
• Redemption terms and conditions
• Circumstances that may constrain redemption
features (e.g. gates)
• Other restrictions on sale of interests
• Fair value of interests whose sale is deemed
probable
• Intent to sell interests, if any
30. 30
Contact
Information
Travis W. Harms, CFA, CPA/ABV
901-322-9760
harmst@mercercapital.com
Jeff K. Davis, CFA
615-345-0350
jeffdavis@mercercapital.com
MERCER CAPITAL
Clark Tower
5100 Poplar Avenue, Suite 2600
Memphis, Tennessee 38137
www.mercercapital.com
32. 32
Fair Value
Scrutiny
“The SEC warned it would be looking more closely at
fund directors—and just sued eight former Morgan
Keegan fund directors for (alleged) inadequate
oversight of how fund holdings were priced. This
problem is only getting bigger.”
Barrons January 5, 2013
“Valuation is one of the most significant areas of
potential risks for funds, particularly those that hold
complex or thinly traded securities that must be “fair
valued”. As directors consider their risk oversight
responsibilities they should pay careful attention to the
adequacy of a fund’s valuation policies and
procedures.”
Mutual Fund Directors Forum – Practical Guidance for
Fund Directors on Valuation Oversight June 2012
33. 33
About
Mercer Capital
• Business valuation and financial advisory firm
founded in 1982
• Core competency is the valuation of private equity
and debt securities
• Valuation and positive assurance opinions
• Fairness and solvency opinions
• Transaction advisory
• Litigation support
• 400 assignments annually, primarily for domestic
entities
• 40 employees (employee-owned)
• Valuation and industry thought leaders
34. 34
Overview
of Services
Valuation
• Tax compliance
• Corporate valuation services
• Employee Stock Ownership Plan valuation
Transaction Advisory Services
• Fairness and solvency opinions
• M&A and investment banking services
• Buy-sell agreements and private company transactions
Financial Reporting
• Private equity, mutual fund, BDC, and other investment
company portfolio valuation services
• Purchase price allocation
• Impairment testing services
Litigation Support
• Expert testimony
• Business damages
• Shareholder disputes / divorce
35. 35
Financial
Reporting
Valuation
Services
Mercer Capital provides a comprehensive suite of valuation services to
assist boards of directors, portfolio managers, financial managers and
others with financial reporting requirements.
In an environment of increasingly complex fair value reporting standards
and burgeoning regulatory scrutiny, Mercer Capital helps clients resolve
fair value reporting issues successfully.
Mercer Capital fair value opinions are consistently accepted by the Big
Four audit firms and other reviewing entities.
Our professionals hold the Accredited in Business Valuation (ABV)
designation from the AICPA, the Accredited Senior Appraiser (ASA)
designation from the American Society of Appraisers and the Charter
Financial Analyst (CFA) designation from the CFA Institute.
Valuation Services for Investment Funds
• Portfolio Investment Valuation
• Fairness and Solvency Opinions
• Litigation Support
Valuation Services for Portfolio Companies
• Purchase Price Allocation
• Goodwill Impairment Testing
• 409A / Equity Compensation Valuation
36. 36
Key Industry
Verticals
Financials
• Depositories
• Asset managers
• BDCs
• Insurance
• Brokers and investment banks
Manufacturing
• Durable and non-durable goods
• Consumer and industrial
Healthcare
• Facilities companies
• Medical devices
• Staffing companies
Distribution and Transportation
• Wholesale distribution
• Asset-based transportation companies (all modes)
• Third-party logistics providers
37. 37
Senior
Professionals
Jeff K. Davis, CFA
• Managing Director
• 10 years with Mercer Capital
• Spent 13 years as a sell-side analyst covering small-
and mid-cap banks and specialty finance
• Weekly editorial contributor to SNL Financial
Travis Harms, CFA, CPA/ABV
• Senior Vice President
• 15 years with Mercer Capital
• Extensive financial valuation reporting experience,
including on behalf of private equity, BDCs and broker-
dealers
38. 38
Senior
Professionals
Z. Christopher Mercer, ASA, CFA, ABAR
• CEO / Founder (1982)
• Prolific author and thought leader on private security
valuation
• Has prepared and overseen over a thousand
valuations for M&A, tax, litigation and other matters
Matt Crow, ASA, CFA
• President
• 19 years with Mercer Capital
• Senior member of Mercer’s financial reporting
valuation group
39. 39
Senior
Professionals
Timothy R. Lee, ASA
• Managing Director
• 19 years with Mercer Capital
• Heads corporate valuation group with industry focus in
beverage, distribution, construction, retail and
transportation
Andy Gibbs, CFA, CPA/ABV
• Senior Vice President
• 14 years with Mercer Capital
• Has completed hundreds of bank and loan portfolio
valuations as head of the depository group for M&A,
ESOP, and other purposes