NAA2409. Getting the Fair Value Right in Business Combinations

This session will look at Business Combination accounting issues from the perspective of the valuation professional. • Understanding how valuation professionals utilize prospective financial information (PFI), growth rates, and terminal value selections in the valuation process • The importance of understanding the relationship between the weight average cost of capital (WACC), the internal rate of return (IRR), and weighted average return on assets (WARA) in a purchase price allocation under ASC 805 • The valuation specialist role in determining the value of earnout liabilities

Learning Objectives:

• Recognize PFI and its impact on valuing non-financial assets.
• Recognize the purpose and importance of reconciling the WACC, IRR, and WARA.
• Apply valuation to improve financial reporting and audit quality.