Companies that make acquisitions of targets with valuable intangibles can be placed at risk if the company hires experts whose focus has narrowed to the point where they fail to realize that financial accounting valuations
have tax effects and vice versa.
Traditional accounting valuation
procedures, by contrast, are too arbitrary in their original form to be meaningful to any potential buyer, since the value of the "goodwill" added to the book value of the assets to arrive at a valuation is indeterminate.
The amendment will not replace historic cost as the basis of accounting valuation
in the Accounting Directives but will complement it, particularly since there is no international consensus that fair value accounting is appropriate in all cases.
The reporting date accommodates the accounting valuation
work related to the acquisition of the Ascom scanning receiver business and the GSMA telecom conference in Barcelona.
The addition of transaction due diligence services to our platform enables us to provide our corporate and private equity clients with independent advice starting at the earliest stages of a transaction through to the purchase accounting valuation
analyses and ongoing impairment testing.
Earnings and analyst forecasts are important inputs into accounting valuation
models to reflect current and predict future firm performance.