AICPA released working draft on Accounting and Valuation Guide “Business Combinations”

On Sept 15th, 2022, the AICPA’s Financial Reporting Executive Committee has issued a working draft of the AICPA Accounting and Valuation Guide Business Combinations. This guide provides guidance and illustrations for preparers of financial statements, independent auditors, and valuation specialists regarding the accounting and valuation considerations for business combination transactions.

This guide addresses many accounting and valuation issues that have emerged over time to assist companies in addressing the challenges associated with accounting for business combination transactions as well as valuation of assets acquired and liabilities assumed.

By far the greatest share of assets to be valued in business combinations involves intangible assets and goodwill. The AICPA guide is the most detailed, in-depth and comprehensive work published in this subject. The full paper can be downloaded here. A must-have item for the bookshelf of all passionate valuation professionals.

The AICPA is currently looking for informal feedback on this working draft, until January 15, 2023.

MARKABLES is the largest provider of comparable market data (comps) to value intangible assets, including trademarks/brand names, customer relations, technology, software and goodwill.