For companies that make acquisitions (ASC 805) and subsequently test for long-lived asset (ASC 360) and indefinite-lived asset /goodwill impairment (ASC 350), fair value measurements (FVM) have become common features of US GAAP financial statements. The valuation and related audit of such FVMs, however, remains relatively controversial even after nearly two decades of application. Join expert Brent Sloan as he discusses technical accounting and valuation pitfalls related to purchase accounting and impairment testing.
Understand the Public Company Accounting Oversight Board’s (PCAOB) latest findings regarding audit deficiencies and its connection with FVM.
Recognize key issues when evaluating FVMs under the Private Company Council’s (PCC) alternative framework within US GAAP.
Understand how FVMs produce a potential conflict when auditors provide assistance to audit clients.
Recognize that FVMs have a continuum of risk, and that the order such are performed (or lack thereof) may lead to potential internal control weaknesses