BV303 Valuation of Intangible Assets and Special Topics

Tuesday, April 5, 2022 - Friday, April 8, 2022

Description

This course presents key principles and real-world applications in the valuation of intangible assets. This four-day course includes internationally recognized guidance developed for the valuation of intangible assets in a financial reporting context including audit requirements for fair value matters. Course materials emphasize materials specific to intangible asset valuation presented by FASB and IFRS releases and developed by task forces established by The Appraisal Foundation or the AICPA.

A partial listing of key topics discussed in depth in the course include:

• Intangible asset characteristics, identification and recognition
• Rolls and contributions of various intangible assets of a going concern
• Valuation methodologies under the Cost, Market and Income Approaches to value
• Market participant and entity specific assumptions to include in valuation models
• Different types of projections and correct integration into intangibles valuations
• Relief from Royalty Method – theory and application
• Royalty rate estimation based on licensing transactions and the profit-split method
• Multi-Period Excess Earnings Method – theory and application
• Differential value methods including With and Without Method and Greenfield Method – theory and application
• Economic life estimates for intangible assets including a detailed discussion of alternative means of developing attrition rate estimates
• Discount rate development for different intangible assets
• Financial reporting guidance pertaining to developing fair value estimates both in general and as it relates to valuing intangibles
• Rolls of the WACC, internal rate of return (IRR) and weighted average return on assets (WARA) in developing estimates of intangible asset values
• Numerous other

Completion of this course is mandatory for individuals interested in obtaining the ASA’s Specialty Designation in Intangible Assets valuation. 

Suggested Pre-Requisites

While this course is open to all who wish to enroll, the following suggested prerequisites may provide for a more meaningful student experience: 

• Degree in finance and/or accounting; 
• At least two years of business valuation experience; 
• Six months’ or more experience performing or reviewing intangible asset appraisals; and 
• General familiarity with fair value guidance.

Advanced Preparation

For detailed insights on intangible asset valuation, students should read: 

• The Appraisal Foundation, Best Practices for Valuations in Financial Reporting: Intangible Asset Working Group, The Identification of Contributory Assets and the Calculation of Economic Rents, issued May 31, 2010; 
• AICPA Practice Aid entitled Assets Acquired to Be Used in Research and Development Activities, issued 2013; 
• The Appraisal Foundation, The Valuation of Customer-Related Assets, issued June 15, 2016; 
• The Appraisal Foundation, The Measurement and Application of Market Participant Acquisition Premiums, issued September 6, 2017; 
• The Appraisal Foundation, Valuation of Contingent Consideration, final document issued February 2019. 

For insights on relevant rules impacting fair value, students should review:

• IFRS 13, Fair Value Measurement; 
• ASC 820, Fair Value Measurements and Disclosures; 
• International Financial Reporting Standard (“IFRS”) 3, Business Combinations; and 
• Accounting Standard Codification (“ASC”) 805, Business Combinations.

Instructional Methods

Methods include lectures, discussions and individual/ group exercises and assignments.  

Course Audience

This course is relevant for individuals that value intangible assets for financial reporting, tax, litigation and other purposes.

Learning Level 

Advanced

Continuing Education and Contact Hours

28.8 ASA CE Instructional Hours and 3 Exam Hours

NASBA and Continuing Professional Education (CPE) Credit

The American Society of Appraisers is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.  State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit.  Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website www.learningmarket.org.

CPE Credit: Up to thirty (30) CPE credits in Specialized Knowledge
Program Level: Advanced
Delivery Method: Only group-live courses are approved for CPE
Prerequisites: None
Advanced Preparation: None
Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy