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• Estate Tax and Gift Tax Valuation
• Small Business Administration (SBA) Financing
• Exit Planning Business Valuations
• ESOP Appraisals
• Merger/Acquisition Valuation
• SFAS 141 and 142 Valuation
• Additional Services

SFAS 141 and 142 Valuation

Statement of Financial Accounting Standards (SFAS) 141 and 142 were enacted by the Financial Accounting Standards board (FASB) in recent years. SFAS 141 requires all companies to account for business combinations using the purchase method (the pooling method was eliminated). Furthermore, all intangible assets can no longer be "lumped" into goodwill but instead all intangible assets acquired that are identifiable and have a finite life must be assigned a value and amortized over their estimated useful life. The value remaining after identification and valuation of all intangible assets is then assigned to goodwill. Goodwill, however, is then subject to periodic impairment reviews (under SFAS 142).

The recent accounting and financial scandals (e.g. Enron, Arthur Anderson, etc.) have heightened the scrutiny of accounting practices and audit firms. There is a strong push for complete independence, whether actual or perceived, in all dealings. Thus, it is important to employ an independent valuation firm to assist in apportioning the value of an acquisition to the assets and to assist in determining whether or not there has been goodwill impairment (generally annually).

Mack Business Appraisals has significant experience and expertise in providing valuations for SFAS 141 and 142. We work with your accountants to ensure that you receive a well-supported valuation that provides your accountants with the information needed to issue your financial statements.

[Click here to read an article regarding FASB 141/142 valuations written by John G. Mack, ASA, CBA that was published in the August/September 2002 issue of AZ CPA].