BV303 Valuation of Intangible Assets and Special Topics

Class Date/Time

Tuesday, May 7, 2024 - Friday, May 10, 2024
10:00am-6:00pm Eastern Daylight Time

Class registration will close on Friday, May 3, 2024. 

Registration Includes

• Access to virtual zoom sessions will be accessible via education dashboard (login required)
• Electronic student materials*

*All course materials included with your registration are PDF Download Only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your education dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.

Class Schedule

(All Times are Eastern Daylight Time - US)

• Day 1 - Tuesday, May 7, 10:00am - 6:00pm 
• Day 2 - Wednesday, May 8, 10:00am - 6:00pm
• Day 3 - Thursday, May 9, 10:00am - 6:00pm
• Day 4 - Friday, May 10, 10:00am - 1:00pm (Final Exam)*

*The final exam will be administered and proctored as shown on the schedule. Exams are no longer provided in a written format and students MUST have a personal laptop or computer device to complete the secure online exam. For any exam questions or technical/logistic concerns, contact education@appraisers.org. More detailed information will be provided before class concludes.

Please note: Partial credit will not be awarded for this offering. Students must participate in all the live session(s) virtually to complete the course and receive full credit following successful completion of the final exam. The virtual session(s) will not be recorded and/or made available after class.

Continuing Education and Contact Hours 

Class provides 28.8 ASA CE Instructional Hours and 3 Exam Hours

NASBA and Continuing Professional Education (CPE) Credit

Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy. ASA 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
Program Level: Advanced
NASBA Knowledge Type: Specialized Knowledge
Delivery Method: Virtual
Prerequisites: None
Advanced Preparation: None

Additional Information

ASA-accredited members (AM, ASA, FASA) who would like to attend this class will receive a 50% discount. This discount will be automatically applied at checkout.

Course 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 

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

Day 1

Section 1: Overview
Importance of Intangible Assets; 
History, Background, Reasons to Value; and 
Definitions

Section 2: Important Issues in Financial Reporting
Prior IPR&D Valuation Concerns; 
Key Financial Reporting Issues; 
Rules for Identification of Intangibles Apart from Goodwill; and 
Audit Requirements.

Section 3: Overview of the Three Valuation Approaches
Intangible Asset Valuation Theory; 
Selection of Valuation Approaches and Method within Each Approach; 
Principles Associated with Each Valuation Method; and 
Tax Treatment of Intangibles.

Section 4: The Cost Approach
Theory, Application, Key Issues; and 
Examples to Highlight Theory and Application.

Day 2

Section 5: The Market Approach
Theory, Application, Key Issues.

Section 6: Overview of the Income Approach
Overview of Various Methods; 
Selection of Appropriate Method; 
Market Participant vs. Entity Specific Assumptions; 
Rates of Return; 
Types of Projections; 
Customer Related Intangibles and Technology Intangibles Issues; and 
Economic Life vs. Amortization Life.

Section 7: Income Approach – Relief from Royalty Method
Overview, Key Issues; 
Discussion of Royalty Rate Estimation; 
Examples to Highlight Theory and Application; 
Profit Split Method; 
Overview of Assumptions; and 
Examples to Highlight Theory and Application.

Late Day 2 and Early Day 3

Section 8: Income Approach – Excess Earnings Method
Overview and Theory; 
Identification of Primary Income Generating Assets; 
Revenue Estimates – Life Cycle and Attrition Estimates; 
Expense Adjustments; 
Contributory Asset Charges; and 
Discount Rate.

Remainder Day 3

Section 9 – Differential Value Methods 
Greenfield Method – Strengths, Weaknesses, When to Use
With and Without Method – Strengths, Weaknesses, When to Use

Section 10 – Attrition Measurement
Constant and Variable Attrition Methods
Customer Count vs. Revenue Based Attrition
Revenue Capped Attrition
Measurement Challenges for Attrition
Overview of Weibull and Iowa Curves

Upon completion of this course, students will be able to:

• Understand the importance of intangible assets in today's economy;
• Identify intangible assets;
• Fully understand the three (3) approaches to valuation (cost, market & income); and,
• Much more!

eMaterials

All course materials included with you registration are PDF Download Only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your education dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.

Accessing eMaterials

eMaterials are provided electronically in PDF format and posted to the class within the education dashboard for all registrants to securely access prior to the start of class. Attendees should come to the class prepared with an electronic or printed copy of all eMaterials to use as a refence during class. PDF course materials are presented in color, are bookmarked, and comment enabled. When opting to print downloadable materials, it is recommended that settings be adjusted to print in black and white (or grayscale) and consider printing double-sided on recycled paper.

Certificate of Completion

Please allow 10 business days following successful completion of the course and final exam to receive a formal status notification and access to a certificate of completion. The certificate will be available to view and/or download via your education dashboard once all required components are completed. 

ASA's Education Foundation recognizes students who choose to invest their time in appraisal studies by providing assistance to students demonstrating a financial need. Please visit the Educational Foundation's webpage for more information and to download an application.