Fair Value Measurement: Practical Guidance and Implementation, 2nd Edition

Information Request for Business Combination—ASC 805

CURRENTLY, we have identified the following five intangible assets as potentially having value:

1. Customer list

2. Existing technology

3. Assembled workforce

4. Trade name

5. Noncompetition agreements

Financial Information

1. Any income or cash flow budgets or projections (three to five years preferable), including revenue, expenses, net income, depreciation, and capital expenditures.

2. Last two years of financial statements: income statement and balance sheet.

3. Detail of final purchase price accounting entry.

Additional Information

4. Please provide the name and contact information (phone number and e-mail address) for your audit partner/manager.

Existing Technology

5. Please provide a summary of all existing technology.

6. What date did the existing technology enter the market? Has it been significantly modified or enhanced?

7. How much effort (in terms of work hours and dollar costs) would be required to reproduce or replace these assets?

8. Is there a specific revenue stream associated with these assets? If so, please identify it, along with all the relevant costs.

Customer Relationships

9. Complete list of customer relationships of the acquired company, including revenue and related expenses per customer for the last three years.

10. Are the customer relationships contractual in nature? If so, please provide sample contracts. Are the contracts for terms greater than one year? Are they typically renewed?

11. ...