Book description
FAIR VALUE MEASUREMENT
Practical Guidance and Implementation
"Writing Fair Value Measurement was a monumental task fraught with controversy not only in the U.S., but also abroad. Having coauthored a book with Mark as well as written one myself, I was even more impressed that Mark was able to navigate these fair value minefields and produce a work that will be a tremendous help to accountants and non-accountants alike. If you are looking for a 'one-stop' book on fair value measurement, this is it!"
—Neil J. Beaton, CPA/ABV, CFA, ASA, Managing Director, Valuation Services, Alvarez & Marsal
"In recent years, the FASB and the IASB have added many requirements for various assets and liabilities to be measured at fair value. In this book, Zyla clearly describes how to implement fair value measurement and how investors and creditors should interpret it. The crisp writing and illuminating analysis will help readers to grasp the essence of fair value accounting and to apply it wisely."
—J. Edward Ketz, Associate Professor of Accounting, Pennsylvania State University
"The focus of the book is on fair value measurement based on level 3 inputs. This is a critical area of valuations for financial reporting due to a false comfort given by routine application of evaluating models and assumptions without real possibilities of calibration. Mark Zyla offers an extraordinary help in understanding the reliability of the inputs and the outputs of the different methodologies and the inherent biases in each of them. The book is a precious support for better valuation both in U.S. GAAP and in IFRS fair value reporting."
—Mauro Bini, Full Professor of Corporate Finance, Bocconi University; Chairman, Management Board OIV (Organismo Italiano di Valutazione) Essential guidance on the fair value measurement process
Now in a second edition, Fair Value Measurement: Practical Guidance and Implementation helps you succeed in understanding the fair value accounting rules that entities must follow. The result is a resource that you can rely on to understand the importance of valuation and the concepts that define it. In basic, nontechnical language, author Mark Zyla presents practical direction for best practices of financial valuation as well as for understanding the many FASB pronouncements involving fair value. An essential guide for auditors and valuation specialists, Fair Value Measurement: Practical Guidance and Implementation, Second Edition brings you up to speed on what fair value really means.
Table of contents
- Cover
- Series
- Title Page
- Copyright
- Dedication
- Preface
- Acknowledgments
- Chapter One: The History and Evolution of Fair Value Accounting
- Chapter Two: Fair Value Measurement Standards and Concepts
- Chapter Three: Business Combinations
- Chapter Four: The Nature of Goodwill and Intangible Assets
- Chapter Five: Impairment
- Appendix Five A: Example of a Qualitative Impairment
-
Chapter Six: The Cost Approach
- THE COST APPROACH UNDER FASB ASC 820, FAIR VALUE MEASUREMENT
- ECONOMIC FOUNDATION FOR THE COST APPROACH
- COST VERSUS PRICE VERSUS FAIR VALUE
- THE ROLE OF EXPECTED ECONOMIC BENEFITS IN THE COST APPROACH
- REPRODUCTION COST VERSUS REPLACEMENT COST
- COMPONENTS OF COST
- OBSOLESCENCE
- THE RELATIONSHIPS AMONG COST, OBSOLESCENCE, AND VALUE
- PHYSICAL DETERIORATION
- FUNCTIONAL (TECHNOLOGICAL) OBSOLESCENCE
- ECONOMIC (EXTERNAL) OBSOLESCENCE
- APPLYING THE COST APPROACH
- TAXES UNDER THE COST APPROACH
- LIMITATIONS OF THE COST APPROACH
- CONCLUSION
- NOTES
- Chapter Seven: The Market Approach
- Appendix Seven A: Using the Guideline Transaction Method to Measure the Fair Value of a Privately Held (or Thinly Traded) Debt Security
-
Chapter Eight: The Income Approach
- DISCOUNTED CASH FLOW METHOD
- MULTIPERIOD EXCESS EARNINGS METHOD
- FASB CONCEPTS STATEMENT 7
- RATES OF RETURN UNDER THE INCOME APPROACH
- THE INCOME INCREMENT/COST DECREMENT METHOD
- PROFIT SPLIT METHOD
- BUILD‐OUT METHOD, OR “GREENFIELD METHOD” (WITH AND WITHOUT)
- WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
- CONCLUSION
- NOTES
- Chapter Nine: Advanced Valuation Methods for Measuring the Fair Value of Intangible Assets
- Chapter Ten: The Remaining Useful Life of Intangible Assets
- Chapter Eleven: Fair Value Measurement for Alternative Investments
- Chapter Twelve: Contingent Consideration
- Appendix Twelve A: Measuring the Fair Value of a Loan Guarantee
-
Chapter Thirteen: Auditing Fair Value Measurement
- AUDITING STANDARDS
- AUDIT STANDARDS FOR FAIR VALUE MEASUREMENTS AND DISCLOSURES
- THE AUDIT PROCESS
- AUDITING ESTIMATES IN FAIR VALUE MEASUREMENTS
- AU 328, AUDITING FAIR VALUE MEASUREMENTS AND DISCLOSURES
- PCAOB STAFF AUDIT PRACTICE ALERT NO. 2
- PCAOB STAFF AUDIT PRACTICE ALERT NO. 9
- SEC AUDIT GUIDANCE
- AICPA NONAUTHORITATIVE GUIDANCE
- THE APPRAISAL FOUNDATION
- CONCLUSION
- NOTES
- Appendix Thirteen A: Auditing a Business Combination or a Step 2 Impairment Test
- Appendix Thirteen B: Auditing a Step 1 Goodwill Impairment Test
- Appendix Thirteen C: Survey of Fair Value Audit Deficiencies
- Chapter Fourteen: Fair Value Measurement Case Study
- Appendix Fourteen A: Suggested Case Study Solutions
- Information Request—ASC 350
- Information Request for Business Combination—ASC 805
- Glossary
- Bibliography
- About the Author
- Index
Product information
- Title: Fair Value Measurement: Practical Guidance and Implementation, 2nd Edition
- Author(s):
- Release date: November 2012
- Publisher(s): Wiley
- ISBN: 9781118229071
You might also like
book
Fair Value Measurement, 3rd Edition
Get up to date on the latest FASB, SEC, and AICPA guidelines and best practices Fair …
book
Business Valuation and Federal Taxes: Procedure, Law and Perspective, 2nd Edition
Praise for Business Valuation and Federal Taxes Procedure, Law, and Perspective Second Edition "The Honorable David …
book
Common U.S. GAAP Issues Facing Accountants, 2nd Edition
Featuring the latest ASUs through the date of publication, this broad-ranging book covers FASB accounting and …
book
Trade Credit and Financing Instruments
This book offers managers a complete analysis of the various facets of commercial credit and presents …