A Valuation Primer for Financial Reporting Self-Study Webinar

To provide CPAs and other financial professionals with the knowledge and skills to begin engaging in fair-value determinations, and better understand valuation reports from third-party professionals. In addition, this self-study webinar will familiarize you with techniques used to test goodwill for impairment, and provide checklists, charts and a basic case study to navigate.

DETAILED LEARNING OBJECTIVES

• Recognize the differences between value, cost and price

• Recognize both the science and the art aspects of valuations

• Identify the context with which valuations are typically used

• Identify the different definitions of fair value promulgated by various authorities

• Identify the characteristics of market participants

• Recognize the common methodologies used in valuation services 

• Recognize the circumstances under which each of the valuation methods are typically used

• Identify the valuation method that utilizes the discounted cash flow technique 

• Identify key valuation metrics

• Recognize common mistakes when using key valuation metrics

• Identify how to calculate the cost of capital

• Recognize the relative valuation relationship between the weighted average cost of capital (WACC), the internal rate of return (IRR), and the weighted average return on assets (WARA)

• Recognize the relationship between an investment’s beta score and its relative volatility

• Identify an investment’s cost of equity using both the CAPM and MCAPM formula

• Identify an entity’s weighted average cost of capital

• Recognize the accounting role of goodwill in valuations

• Recognize how to value contingent consideration 

• Identify the valuation method generally resulting in the highest amount when used to value a business 

• Identify the valuation method that uses historical financial information as its starting point 

• Recognize the separate components of a discounted cash flow valuation 

• Identify a common mistake made in financial forecasting

• Recognize common terminology used in valuations

• Recognize typically acceptable valuation terminal growth ranges

• Identify the circumstances under which intangible assets are recognized in valuations

• Identify the FASB’s recognized categories of intangible assets

• Identify the role of the tax amortization benefit of intangible assets in valuations 

• Recognize the accounting and other implications of non-compete agreements in valuations

• Recognize the different valuation credentials currently recognized in the marketplace

• Types of Value
  – Market
  – Enterprise
  – Equity
• Fair Value Hierarchy
  – Cost, market and income approaches
• Valuation Process
  – Internal Rate of Return (IRR)
  – Weighted Average Return on Assets (WARA) 
  – Equity
  – Company Specific Risk Premium (CSRP)
  – Capital Asset Pricing Model (CAPM)
  – Weighted Average Cost of Capital (WACC)
• Goodwill & Intangible Asset Impairment Testing
• Valuing an Acquisition
• Transaction Price
• Contingent Consideration
• Cost, Market & Income Approaches
  – Historical cost trending
  – Unit cost method
  – Unit of production
  – Contributory assets
  – Discounted Cash Flow (DCF) Valuation
  – Terminal value
• Tax Amortization Benefit
• Fair Value Disclosures