FAS 141R Valuation Services

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ASC 805 (previously FAS 141R Valuation Services) Purchase Price Allocations – Valuation of Intangible Assets and ASC 350/360 (previously FAS 142/144) – Goodwill and Intangible Asset Impairment Analysis.

Companies are required to allocate the purchase price at fair market value when they acquire or merge with another company. Determining the fair market value of such intangible assets is a complex valuation procedure that should be executed by an expert valuation firm. Greener Ventures will be your trusted ally in properly determining the value of your intangible assets.

Effective January 2009, the FASB enacted sweeping changes to the terms regulating mergers, acquisitions, and also non-controlling interests. The new regulations changed the accounting rule set fundamentally, and the valuation standards were also substantially altered. With few exceptions, all assets and all liabilities in connection with full, partial, and step acquisitions must now be recorded at their fair market values on the transaction date.

Purchase price allocation, or PPA, is an application of goodwill accounting whereby one company (the acquirer), when purchasing a second company (the target), assigns new values to the target’s assets and liabilities based on the price paid. In the United States, the process of conducting a PPA is typically conducted in accordance with ASC 805 (formerly FAS 141R) “Business Combinations” and ASC 350 (formerly FAS 142) “Goodwill and Other Intangible Assets”. Purchase price allocations are performed in conformity with the purchase method of merger and acquisition accounting. In the United States, a second method (known as the pooling or pooling-of-interests method) was discontinued after the issuance of the Statement of Financial Accounting Standards No. 141 “Business Combinations” (“SFAS 141”) and SFAS 142.

To request a quote and learn more about our valuation services, please contact us.