Title: Initial Measurement of Acquired Intangible Assets
Abstract:The principles used for determining the fair value of intangible assets are found in ASC 820 and in IFRS 13, Fair Value Measurement. All valuation approaches require data, such as the quoted price of ...The principles used for determining the fair value of intangible assets are found in ASC 820 and in IFRS 13, Fair Value Measurement. All valuation approaches require data, such as the quoted price of stock on an exchange or the estimated cash flows from an asset. Inputs used to determine fair values are either derived from market observations or developed internally. The common methods to measure the fair value under the income approach are the discounted cash flow method, the multiperiod excess earnings method, the scenario method, and the Greenfield method. This chapter contains a comprehensive example that illustrates commonly accepted valuation principles applied in the measurement of the fair value of specific intangible assets. In a business combination, goodwill is the residual amount after the sum of the fair values of the identified assets acquired and liabilities assumed has been subtracted from the fair value of the acquisition price.Read More
Publication Year: 2018
Publication Date: 2018-10-08
Language: en
Type: other
Indexed In: ['crossref']
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