FAS 141R: Valuing Contingent Assets and Liabilities

Mastering Valuation Standards for Mergers, Acquisitions and Combinations

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, July 27, 2010

Recorded event now available

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Program Materials

This webinar will provide advisors with best practices for complying with FAS 141R standards for accounting for business combinations and their 2009 revisions, including the valuation of contingent assets and liabilities recognized during mergers and acquisitions.

Description

Over the last few years, valuation specialists have worked under revamped FASB standards for valuing contingent assets and liabilities obtained via M&A or a combination, in the form of FAS 141. Challenges in meeting dictates of FAS 141R and the subsequent FAS 141R-1 have proved persistent.

Changes in FAS 141R and FAS 141R-1 as a whole offer relief to companies with newly acquired assets and liabilities that may or may not be recognized due to economic uncertainties. However, businesses and advisors have found it challenging to sort through the reporting changes and react quickly.

Those changes included an altered recognition date for some assets, revisions to the standard for when to recognize assets and liabilities, and new disclosure requirements that depend on the recognition date. How do the two FAS documents work together, and how did the second alter the first?

Listen as our panel of experienced valuation professionals analyzes the ongoing challenges in adapting to the changes in combination accounting standards and how financial reporting and compliance practices should shift as a result.

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Outline

  1. FAS 141R-1 revisions to merger and acquisition accounting
    1. Definition of contingent assets and liabilities
    2. Determining the recognition date for contingencies
    3. Valuation of recognized contingencies at fair value
    4. Valuation of unrecognized contingencies under FAS 5
  2. Disclosure requirements for contingencies with known and unknown recognition dates
    1. “Nature of contingencies” disclosures
    2. FAS 5 disclosures
    3. Disclosures eliminated under the revisions
  3. FAS 141R and FAS 160 considerations
    1. FAS 141R
      1. Definition of a business provisions
      2. Coping with same-period disclosures
      3. In-process R&D capitalization
      4. Expensing acquisition costs
    2. FAS 160

Benefits

The panel will offer best practices for following FASB's valuation standards for mergers and acquisitions, addressing key topics such as:

  • Determining the appropriate recognition date for contingent assets and liabilities.
  • Following the appropriate valuation model, once the recognition date is determined.
  • Accurately completing the disclosures required for recognized contingencies.
  • Profiting from lessons learned from FAS 141R and FAS 160 thus far.

Faculty

Rick Martin
Rick Martin

Vice President of Technical Accounting
Pluris Valuation Advisors

In his position with the firm, he is in charge of resolution of technical accounting issues as they pertain to...  |  Read More

Mark T. Plichta
Mark T. Plichta

Partner
Foley & Lardner

He works in the Transactional and Securities Practice with Foley & Lardner. He specializes in the areas of...  |  Read More

William T. Berry, Jr.
William T. Berry, Jr.

Partner
Cherry, Bekaert & Holland

He has more than 20 years of accounting and finance experience and is a member of the firm's Commercial Finance Group,...  |  Read More

Jay Seliber
Jay Seliber
Assurance Partner
PricewaterhouseCoopers

He is the national practice leader for the firm's implementation of new business combination standards, and also is...  |  Read More

David Gaynor, II
David Gaynor, II

Vice President
Pluris Valuation Advisors

He works on business development and management matters for the firm, concentrating on valuations for financial...  |  Read More

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