We find this comes up whenever we do a Business Valuation.  The question concerns Goodwill and how it should be handled in a Valuation Report.

There are as many ways to handle Goodwill in an Evaluation as there are Certified Public Accountants!  Well, not quite, but a great many CPAs use different formulas and there are so many and varied approaches, that the FASB issued a Defining Statement, way back in June of 2001.

Let me state upfront, we are not CPAs.  Nor is Pro Biz a CPA firm.  We do not pretend to have a higher level of expertise in interpreting these rules.  But we do have very smart software!  And we recognize that Goodwill and how other intangible assets are handled is vitally important to the outcome of YOUR Business Valuation!

It would be fair to say that the issue of Goodwill and other intangible asset valuation allows the Appraiser to customize the Valuation Report to the needs and the purpose of the Client.  That is why we ask so many questions.  Are you up against the IRS and they are killing you on the Goodwill issue, for instance. In your defense we would take a different position than if you were selling your company and want to maximize Goodwill value to obtain the highest price from a Buyer.

This is where S 142 comes into play.  Everyone now has a third party reference!

The point we want to leave you with is this, our questionnaire and our software take 142 seriously.  You can take our Pro Biz Valuation to the Bank!

Summary of Statement No. 142 for your reading pleasure. more…