Fair Value Measurements Workshop

Fair Value Measurements are reshaping financial accounting – from the focus on historical costs to more current values. The objective of the Workshop is to discuss the conceptual issues in using fair value measurements and provide examples of valuation measurements. 

This Workshop will provide detailed examples of measuring the fair value of individual assets, especially as prepared by a valuation specialist. The workshop will show members in industry as well as their outside auditing firms the information necessary to confront the challenges in making and attesting to fair value measurements.

Workshop Highlights:

• trends and other issues behind the development of fair value measurements
• discussion of conceptual issues in estimating fair value
• hands-on examples of measuring fair value from the perspective of an outside specialist

Who Should Attend: Senior financial executives (public companies or privately-held) and their accounting/finance staff, as well as CPAs, and other Business Valuation Specialists

Day One - Thursday, February 26, 2009

1. Introductions and Seminar Overview

2. Overview of Fair Value Accounting
a. The Changing Economic and Regulatory Environment
b. A vision from the CEOs of International Audit Networks
c. The FASB and IASB Convergence Project
d. The conceptual Framework Project
e. Current FASB Statements Requiring Fair Value Measurements

3. SFAS No. 157, Fair Value Measurements
a. History and Background
b. Definition of Fair Value
c. Highest and Best Use Application Criteria Applied to Assets
d. Application to Liabilities
e. Fair Value at Initial Recognition
f. Introduction to the Three Approaches to Value
g. Other Guidelines
h. Other Definitions-Inputs
i. Fair Value hierarchy
j. Disclosures

4. Fair Value Measurements in Business Combinations (SFAS 141)
a. Introduction and Background
b. Accounting Overview
c. Steps in Applying Fair Value measurements in a Business Combination

5. The impact on fair value from SFAS 141(r) Business Combinations
a. Proposed Changes to Business Combinations Under SFAS No. 141(r)

6. Testing for Subsequent Impairment of Fair Value
a. Overview of Testing for Impairment of Assets
b. When to Test
c. Nature of Goodwill
d. SFAS 144 - Accounting for the Impairment or Disposal of Long-lived Assets
e. Impact of SFAS 157, Fair Value Measurements

7. Measuring Fair Value - Working with a Valuation Specialist
a. Valuation Specialists
b. Estimating Fair Value from the perspective of a Valuation specialist
c. Valuation techniques
d. Basic Approaches to valuing any Asset or Business Interest
e. Working with a Valuation Specialist

8. SAS No. 101, Auditing Fair Value Measurements and Disclosures
a. Standards of Fieldwork
b. Engaging a Specialist
c. Evaluating the Results of Audit Procedures
d. Tools available

9. Fair Value Option (SFAS 159)
a. What is the Fair Value Option?
b. Recognized Financial Assets and Financial Liabilities that are not Eligible Items
c. When and How to Apply the Fair Value Option
d. Presentation of Items Measured at Fair Value under this Statement
e. Effective Date

10. Update of other FASB projects
a. FASB Projects Related to Fair Value Measurements
b. Invitation to Comment, Valuation Standards
c. Valuation Resource Group

Networking Reception for all participants

Day Two - Friday, February 27, 2009

1. Introduction to Fair Value Measurement in Business Combinations

2. Fair Value Measurement Case Study

3. Introduction to Valuation of Intangible Assets and Intellectual Property

4. The Market Approach
a. Relief from Royalty Method
b. Comparable Transaction Method
c. Rules of Thumb
d. Transaction of Intangible Assets of the Subject
e. Court Cases
f. Additional Information

5. The Cost Approach
a. Economic Basis
b. Basic Formula
c. Determining Cost to Recreate New
d. Determining Time to Recreate
e. Determining Obsolescence
f. Additional Considerations

6. The Income Approach
a. Excess Earnings Method
b. Loss of income Method
c. Multi Period Excess Earnings
d. Rates of Return on Intangible Assets
e. Contributory Charges
f. Economic Life
g. Tax effect and amortization benefit

7. Using Option Pricing Methods for valuating Intangible assets
a. Limitations of Traditional Income Approach
b. Assets that Can be Valued Using Options Methodologies
c. Introduction to Using Option Methods for Intangible Assets
c. Using the Binomial Method
e. Monte Carlo Simulations

8. Useful Life Analysis of Intangible Assets
a. Factors that Determine Useful Lives

9. Case Study of the Valuation of Intangible Assets in Financial Reporting
Conclusion of the Workshop

TRAINING FORUM:
AICPA Boardroom
1211 Avenue of the Americas
New York, NY 10009
(PLEASE NOTE: Photo ID is required for building security check-in)

RECOMMENDED HOTEL ACCOMODATIONS:
Please request the “AICPA Corporate Rate”. Rates are subject to availability.