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Appraisal Economics offers valuation services in accordance with ASC 350 (formerly FASB 142) and ASC 805 (formerly FASB 141).
This page provides information about changes implemented by ASC 350.
For more information about our company and our valuation services,
please visit our homepage at this link: ASC 350 Valuation Services.
Defining ASC 350 (formerly FASB 142)
With the increase of intangible assets being acquired through
business transactions, better financial information was needed to
ensure an efficient process. The Financial Accounting Standards Board
enacted ASC 805 and 350 to provide investors with more accurate
financial information.
Financial Reporting Changes
The major financial reporting change due to ASC 350 (formerly FASB 142)
is the elimination of the amortization of goodwill. Under this change,
goodwill and other intangible assets are now subject to an annual test
for impairment of value. FASB 142 required businesses to perform a
Transitional Impairment Test on all goodwill within six months. After
the initial test, businesses must perform the Goodwill Impairment Test
on an annual basis. This test must identify potential impairments and
compare the implied fair market value of goodwill to its carrying
amount.
The ASC 350 change affects goodwill related to acquisitions
completed after the effective date and any balance of goodwill from
previous deals that has not already been amortized.
More Information on ASC 350 (formerly FASB 142)
Accounting for business combinations has historically been a controversial issue in financial reporting. ASC 350 and ASC 805
are intended to address critical issues of accuracy in financial
reporting. Appraisal Economics has the experience and resources to
provide the high-level of valuations expected by the SEC. For more
information about our valuation services or a ASC 350 valuation please contact us today.
Appraisal Economics offers a wide variety of independent valuation
services to the business, financial and legal communities. Read more
about our wide variety of industry expertise and services provided,
such as cost segregation and business valuation. To learn more, please follow the links below:
Trademark Services
Transfer Pricing
Equipment Valuation
Solar Valuation Services
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