Fair Value Financial Reporting

As businesses continue to become more service based, intangible assets have increased in both recognition and value. CVI’s experts are well versed in the approaches and methods used to determine value for intangible assets specific to both Fair Value and Fair Market Value standards. Our appraisers regularly attend industry conferences and attend cutting edge educational events and discussions in order to stay informed of the ever changing regulations and advisement concerning intangible asset valuation.

Intangible assets valued by CVI include but are not exclusive to the following:

Brand names Broadcast licenses Buy-sell agreements Chemical formulas Computer software Computerized databases Contracts Cooperative agreements Copyrights Credit information files Customer contracts Customer & client lists

Customer relationships Development rights Distribution networks Distribution rights Drilling rights Employment contracts Environmental rights FCC licenses Favorable financing Favorable leases Food flavorings & recipes Franchise agreements

Joint ventures Know-how Leasehold interests Loan portfolios Management contracts Mineral rights Non compete covenants Options, warrants, grants Patent applications Patents Permits Procedural manuals

Proprietary processes Proprietary products Proprietary technology Retail shelf space Royalty agreements Shareholder agreements Subscription lists Supplier contracts Trade secrets Trained & assembled workforce Trademark and trade names Training manuals

Purchase Price Allocation

In general, the purpose of retaining a business valuation firm in relation to a purchase price allocation is to help identify and independently value appropriate intangible assets. The value of the identified assets is then combined with the firm’s other assets and considered against liabilities and price paid in order to recognize the net residual amount to be designated as goodwill.

CVI’s professionals have led several purchase price allocation engagements. Purchase price allocations often are complex transactions that if not managed properly, can become excessively expensive. Here at CVI, we take a collaborative approach by fostering communication between our appraisers, auditors, management and other professionals; thereby avoiding costly delays and/or misunderstandings.

Financial Accounting Standards Board (FASB) statements related to purchase price allocation and intangible asset valuation include the following:

• ASC 805 Business Combinations
• ASC 350 Goodwill and Other Intangible Assets

Stock Based Compensation

The valuation of stock options relies on several assumptions made by both top management and the appraiser. An independent business valuation firm, such as CVI, can help by determining the Fair Value of the underlying stock and by collaborating with management to develop reasonable and supportable assumptions. Our experts have performed several stock option valuation engagements through which our methodology, due diligence and experience often leads to a significantly expedited review process.

FASB statements related to stock based compensation include the following:

• ASC 718 & 305 Accounting for Stock Based Compensation

IRS regulations related to stock based compensation include the following:

• Section 409a Nonqualified Deferred Compensation

Other FASB statements related to the topics discussed above include:

• ASC 820 Fair Value Measurements