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Appraisal Economics is experienced in providing valuation services
in accordance with ASC 805 and ASC 350 (formerly FASB 141 and FASB
142). Discover how the knowledge and experience of Appraisal Economics
can be utilized to your benefit, and learn more about each of our business valuation services, and our commitment to providing clients with accurate, detailed results.
ASC 805 & ASC 350 (formerly FASB 141 & FASB 142)
ASC 805 and ASC 350 (formerly FASB 141 and FASB 142)
are Statements of Financial Accounting Standards enacted by the
Financial Accounting Standards Board. The main goal of both is to
empower investors with better financial information. ASC 805 and ASC
350 were enacted to address critical issues of accuracy in financial
reporting.
ASC 805 requires using the purchase method of accounting to evaluate
all business combinations. It also prohibits using the
pooling-of-interests method. Furthermore, parties are required to
estimate the fair value of acquired intangible assets using a specific
method. According to ASC 805, intangible assets must be categorized by
type and separated into two groups: those with an identifiable
remaining useful life and those with an indefinite useful life. The
latter is classified as goodwill. In summary, ASC 805
was enacted to better reflect the investment made in an acquired
entity, improve the comparability of reported financial information and
provide more complete financial information.
Under ASC 350
the amortization of goodwill will no longer be permitted, although it
will still be recognized as an asset. Instead, companies now have to
test goodwill at least once a year for impairment. In the past,
goodwill has been amortized over its useful life.
Expert Valuation Services
Appraisal Economics has the personnel, expertise and resources
required to provide ASC 805 and ASC 350 valuation services that will
stand up to SEC scrutiny. Our global valuation services are the product
of comprehensive analysis and valuation expertise. For more information
about our valuation services, please follow this link: ASC 805 Valuation Services.
Other Valuation Services
Appraisal Economics offers a wide variety of independent real estate, equipment, and business valuation
services to the financial, legal and business communities. Learn more
about our wide variety of industry expertise and services offered, such
as cost segregation, fairness opinions, or follow the links below for more information.
The Valuation of Intangibles
Goodwill Impairment
Power Plant Valuation
Solar Project Valuation
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