FAS 141, 142 and 157 Valuations
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About FAS 141/142
The Financial Accounting Standards Board (FASB) has issued two financial accounting standards, FAS 141 and FAS 142. These standards were established 1) to better reflect investments made in acquired companies, and 2) to provide additional information regarding acquired intangible assets. FAS 141 mandates that all assets acquired and liabilities assumed are valued at their fair value. FAS 142 states that the value of economic goodwill is volatile and may be subject to impairment. As such, value should be tested annually, at a minimum.
About FAS 157
FAS 157 became effective for entities with fiscal years beginning after November 15, 2007. It is intended to bring clarity on the definition of fair value, which is defines as “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” FAS 157 only applies when another accounting rule requires or permits a fair value measure for that item. While FAS 157 does not introduce any new requirements mandating the use of fair value, the definition as outlined is based on the asset’s bid price rather than its asking price, regardless of whether the entity plans to hold the asset for investment or resell it later. FAS 157 emphasizes that fair value is market-based rather than entity-specific.
Experienced Leadership in All Asset Classes
Intangible Assets
Intangible asset valuations are managed by Craig Morse and Jason Frank. The enterprise valuation group has experience in valuing businesses and intangible assets for a variety of purposes including asset based lending, financial statement reporting, taxation, S-corporation conversions and dispute resolution.
Intangible asset valuations are managed by Craig Morse and Jason Frank. The enterprise valuation group has experience in valuing businesses and intangible assets for a variety of purposes including asset based lending, financial statement reporting, taxation, S-corporation conversions and dispute resolution.
Machinery and Equipment
Machinery and equipment valuations are conducted under the leadership of George Weinberger. George is an Accredited Senior Appraiser with a designation in Machinery and Technical Specialties. He is a former instructor of machinery valuation in courses sponsored by the American Society of Appraisers, and is a past editor of the Machinery and Technical Specialties Journal. Hilco’s machinery and equipment group regularly performs valuations for asset-based lending, financial and tax reporting, insurance and other purposes.
Real Estate
Real estate valuations are conducted under the leadership of Todd Haney. Todd has over 12 years of valuation and consulting experience. He has earned the MAI designation from the Appraisal Institute.
Hilco’s “Added Value” Promise to You.
1. Hilco’s experienced and credentialed professionals will assist you in your FAS 141/142 valuation needs in a way that minimizes demands on management. We will partner with you and your auditors early in the process, ensuring that our valuations accurately reflect the value of your assets.
2. Hilco has worked with the audit groups of both large public and regional accounting firms. We are familiar with the methodologies required to accurately and expediently execute engagements.
3. Hilco can provide an integrated solution to your valuation needs. Hilco’s professionals regularly value intangible assets, machinery and equipment, real estate, inventory and accounts receivable.
4. Hilco can perform valuations for businesses ranging in size from small, single location operations to large, international operations involving multiple classes of assets. We have professionals located throughout North America and Europe.
5. Hilco provides a designated “point person” on every engagement to assure proper management of communications, process execution and quality control. Our valuation experts are available to provide valuation insights before, during, and after the transaction — partnering with you to get through the transaction mechanics so you can focus on your business.