Autumn 2012

Focus on Intangible Asset Valuation

Intangible Asset Valuation Insights

The Cost Approach and the Intangible Asset Valuation Assignment
Kyle J. Wishing and Robert F. Reilly, CPA
The cost approach is particularly applicable to certain types of intangible assets and for certain types of intangible asset valuation engagements. This discussion summarizes (1) the many reasons to value intangible assets and (2) the many types of commercial intangible assets. And, this discussion summarizes the common elements of the intangible asset valuation engagement.

Intangible Asset Valuation Approaches and Methods
Brian P. Holloway and Robert F. Reilly, CPA
The cost approach is particularly applicable to certain types of intangible assets and for certain types of intangible asset valuation engagements. This discussion summarizes (1) the many reasons to value intangible assets and (2) the many types of commercial intangible assets. And, this discussion summarizes the common elements of the intangible asset valuation engagement.

Confirming the Cost Approach Intangible Asset Value Indication
Adriana A. De La Mora and Robert F. Reilly, CPA
The cost approach is applicable to the valuation (1) of many types of intangible assets and (2) of intangible assets that operate in many industries. However, before reporting the cost approach value conclusion, the valuation analyst will typically attempt to confirm the value indication. This discussion summarizes value indication confirmation procedures. This discussion also presents several illustrative examples of intangible asset valuations.

Procedures Companies Can Use to Maximize the Value of Their Intellectual Property
Justin M. Nielsen and Robert F. Reilly, CPA
Valuation analysts can work with company senior management to more effectively use their intellectual property assets. The valuation analyst can document, inventory, and value all of the company’s intellectual property. This discussion presents ten practical procedures that companies can use to benefit from the value of their intellectual property.

Thought Leadership:
Forensic Analysis of Intangible Asset Damages
Robert P. Schweihs and Robert F. Reilly, CPA
Intangible assets are often the subject of breach of contract disputes and tort disputes. In such claims, the intangible asset owner/operator typically attempts to prove that it suffered economic damages due to the defendant’s wrongful actions. This discussion summarizes the generally accepted approaches, methods, and procedures related to the measurement of intangible asset economic damages.

Bankruptcy Insights

Income Tax Considerations Related to the Abandonment, Foreclosure, or Repossession of Collateral Property
Urmi Sampat and Robert F. Reilly, CPA
Financially troubled debtors (both corporate and individual) have to face difficult decisions when they cannot honor their debt obligations. For a secured loan, the alternative may be that the debtor will either abandon the collateral property, go through a foreclosure proceeding, or have the collateral property repossessed. As if these events were not bad enough, there are often negative income tax consequences to the debtor related to these alternatives. This discussion summarizes the income tax consequences related to a collateral property abandonment, foreclosure, or repossession.

Income Tax Consequences of Debt Modification
Kevin M. Zanni and Robert F. Reilly, CPA
Debt restructurings are common among financially troubled debtor corporations. And, debt restructurings are common among corporations within bankruptcy protection. However, debt restructurings can have unfavorable income tax consequences to the debtor, the creditor, and the third party holding the debt instrument. This discussion summarizes the income tax consequences that all parties should consider in a corporate debt modification.

ESOP Valuation Insights

Best Practices:
Valuation Considerations in the Sale of Employer Corporation Stock to an ESOP and to Other Parties
Chip Brown, CPA, Steve Whittington, and Robert F. Reilly, CPA
Sometimes close corporations sell common stock at the same time to an employee stock ownership plan (ESOP) and to a non-ESOP investor. In such an instance, for many reasons, the values (i.e., prices) of the two blocks of stock may not be the same. This discussion summarizes the different considerations between (1) valuing employer stock for an ESOP purchase transaction and (2) valuing employer stock for a non-ESOP purchase transaction.

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