FASB 142

Appraisal Economics offers valuation services in accordance with FASB 142 and FASB 141. This page provides information about changes implemented by FASB 142. For more information about our company and our valuation services, please visit our homepage at this link: FASB 142 Valuation Services.

FASB 142: A Definition

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 FASB 141 and FASB 142, Statements of Financial Accounting Standards (SFAS), to provide investors with more accurate financial information.

FASB 142: Changes

The major financial reporting change due to 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 requires 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 FASB 142 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.

FASB 142: More Information

Accounting for business combinations has historically been a controversial issue in financial reporting. FASB 142 and FASB 141 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 valuations please contact us today using the information on this page or visit our homepage at this link: FASB 142 Valuation from Appraisal Economics.

Independent Valuation Services

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:

Intellectual Property

Intangible Assets

Stock Valuation

SFAS 123

Equipment Valuation