Raymond Rath, Managing Director at Globalview Advisors, participated in a meeting of senior valuation professionals discussing FASB’s July 9, 2019 Invitation to Comment on Identifiable Intangible Assets and Subsequent Accounting for Goodwill (the “ITC”). The meeting was held on January 8, 2020 in New York City. Mr. Rath was one of a select group of business valuation professionals with a deep focus on financial reporting valuations invited to participate at the meeting.
Participants at the meeting included senior valuation professionals from the Big 4 and other major accounting firms, representatives of the major valuation providers with a focus on financial reporting valuations and representatives of the American Society of Appraisers and the Royal Institute of Chartered Surveyors (RICS).
Discussion topics included:
- Perspective of the FASB on the invitation to comment and possible future changes to ASC 350;
- Perspective of the International Accounting Standards Board on possible changes to IAS 36, Impairment of Assets;
- Arguments posed by various interested parties including regulators, preparers and users of financial statements for and against changes to ASC 350;
- The definition of goodwill and whether goodwill is accurately captured in our current accounting model. An International Valuation Standards Council perspectives paper, Is Goodwill a Wasting Asset?
- Market perceptions of goodwill impairment and whether it is a leading or lagging indicator (see Information Value of the Current Impairment Test: Leading or Lagging Indicator?; and
- CFA Institute’s response to the FASB ITC.
For further information, please contact Michael Haghighat, ASA at +1 (949) 475-2801 or email@example.com or Raymond Rath, ASA, CEIV, CFA® at +1 (949) 475-2808 or firstname.lastname@example.org.