Praise for Valuation for Financial Reporting, Third Edition "Writing a book on financial reporting is a challenge in and of itself, let alone to focus on the shifting sands of valuation in financial reporting. Yet, Mard and company have done it again, and this time, it is even more user-friendly, easy to read, and topical. If you intend to wade into the swift currents of providing valuation services for financial reporting, you must have Valuation for Financial Reporting in your library or on your desk!" —Neil J. Beaton, CPA/ABV, CFA, ASA, National Partner in Charge of Valuation Services, Grant Thornton, LLP "I really like the flowcharts. The authors take the complex world of fair value measurement for business combinations and convert it to easily understandable and usable flowcharts, worksheets, and checklists." —Gordon Goodman, Trading Control Officer, Occidental Petroleum, and member of the FASB Valuation Resource Group "The comments on efficient markets and faithful representation in the first chapter were very (very) helpful and well written. Masterful! Great book and I look forward to adding it to the library!" —Robin E. Taylor, CPA/ABV, CFE, CVA, CBA, Dixon Hughes PLLC, and Chairman, AICPA Business Valuation Committee

Table of Contents:
Preface ix Acknowledgments xi About the Authors xiii About the Website xvii CHAPTER 1 Fair Value Measurements and Financial Reporting: Financial Reporting and the Current Environment 1 Fair Value Measurements 6 Mark-to-Market Accounting 18 Notes 20 Appendix 1.1: Fair Value Flowchart 22 CHAPTER 2 Business Combinations 29 Intangible Assets 29 Business Combinations 35 The Acquisition Method 36 Recognition and Measurement 41 Goodwill 53 Recording the Consideration Transferred 55 Disclosure 56 Notes 57 Appendix 2.1: Business Combination Flowchart 60 Appendix 2.2: Business Combination Overview 65 Appendix 2.3: Intellectual Property 66 CHAPTER 3 Case Study 1: Determining the Value of Goodwill and Other Intangible Assets in a Business Combination 71 Consideration and Calculation of the Total of Intangible Assets and Goodwill 72 Business Enterprise Analysis 81 Valuation of Tangible Assets 88 Valuation of Intangible Assets 91 Valuation of Goodwill 122 Weighted Average Return on Assets 123 Disclosure 124 Notes 128 CHAPTER 4 Noncontrolling Interests and Impairment 131 Noncontrolling Interests 131 Impairment 135 Notes 141 CHAPTER 5 Case Study 2: Impairment Analysis 143 Valuation of Tangible Assets 155 Valuation of Intangible Assets 158 Conclusion 185 Notes 185 CHAPTER 6 Implementation and Reference Aids 187 Business Valuation Reporting Standards 187 Reference Aids 197 Implementation Aids 235 Notes 267 Index 269