The Canadian Institute of Chartered Business Valuators. The American Society of Appraisers

Transcription

1 The Canadian Institute of Chartered Business Valuators and The American Society of Appraisers are pleased to present A Joint Three-Day Intermediate Business Valuation Seminar Valuation of Intangible Assets for Financial Reporting Wednesday, November 5 - Friday November 7, :00 AM - 5:00 PM daily Sutton Place Hotel, Vancouver, BC Instructors: Vincent Conte, CA, CFA, CBV Jim Horvath, FCBV Munish Mohendroo, CBV, MBA(UK), CMA(UK) The Canadian Institute of Chartered Business Valuators and the American Society of Appraisers are pleased to present a three-day seminar focusing on the Valuation of Intangible Assets for Financial Reporting. This seminar has been jointly developed by the ASA and CICBV.

2 Course Description This introductory/intermediate level 3-day intensive course contains an indepth review of the history, theory and current best practices involved in the valuation of intangible assets for financial reporting purposes. The course material will cover both Canadian and US guidance including CICA 1581, FASB 141R and FASB 157. Key topics include: Current Hot Issues in Financial Reporting, Overview of Valuation Approaches, Cost Approaches Commonly Employed, Challenges associated with the Market Approach, the Relief from Royalty Approach, the Multi-period Excess Earnings Approach (including discussion on appropriate discount rates and contributory asset charge methodologies) and Overview of Canadian, US and International Guidance on Valuation for Financial Reporting (purchase price allocations and impairment testing). Practical examples and useful case studies will be prepared, reviewed and discussed in class. Previous experience in valuation for financial reporting is beneficial but not required. Section One Introduction In Section One the participant will: (i) be exposed to current concerns regarding valuations for financial reporting; (ii) obtain an understanding of the importance of intangible assets to business value and competitive strategy; (iii) briefly review the history of intangible asset valuations; and (iv) obtain an understanding of the key reasons for valuing intangible assets and the key terms relevant to valuation of intangible assets. Section Two Important Issues in Financial Reporting In Section Two the participant will: (i) obtain an understanding of certain changes in Canadian and US accounting requirements; (ii) develop an awareness of prior IPRD valuation problems; (iii) obtain an understanding of the financial statement impact of valuations, the basic rules for identification of intangible assets and the different types of Customer Related Intangibles; (iv) be provided with an in-depth review of CICA 1581 and SFAS 157 concepts; and (v) obtain an understanding of audit requirements pertaining to valuations and the hierarchy of accounting guidance. Section Three Overview of the Valuation Approaches In Section Three the participant will: (i) obtain an understanding of the key differences in business and intangible asset valuation and an in-depth comprehension of the three approaches to value in the context of intangible asset valuation including the principles underlying, and the key elements of each valuation approach; (ii) obtain an understanding of the factors to consider in selecting an appropriate valuation method; and (iii) obtain an understanding of how to calculate and apply the tax amortization benefit. Section Four The Cost Approach In Section Four the participant will: (i) obtain an understanding of key Cost Approach concepts and terminology, the components of cost to be included in the analysis and

3 the various ways in which cost is defined; (ii) learn to recognize issues associated with estimating obsolescence; and (iii) learn how the Cost Approach is used to value two different types of intangibles assembled workforce and software. Section Five The Market Approach In Section Five the participant will: (i) obtain an understanding of the uses of the Market Approach in valuing intangible assets and the challenges associated with finding meaningful market transactions for the Market Approach for the valuation of most intangible assets; (ii) identify intangibles that may be valued using the Market Approach; (iii) recognize potential sources of market data; (v) obtain an understanding of key considerations for estimating a royalty rate based on market licenses of intangible assets; and (vi) obtain an understanding of the challenges associated with use of the Profit Split Method to estimate a royalty rate and the key factors to consider in estimating a profit split. Section Six Introduction to the Income Approach In Section Six the participant will: (i) obtain an understanding of the different methods of the Income Approach and the criteria used to select an appropriate method of the Income Approach to employ; (ii) obtain an understanding of the intangible assets most frequently valued using an Income Approach, the related valuation method used, and the key differences in the application of the methods; (iii) learn the differences between market participant and entity specific assumptions; and (iv) learn to recognize the different types of projections. Section Seven Relief from Royalty Method In Section Seven the participant will: (i) obtain an understanding of the premise of the Relief from Royalty Method and a comprehension of the key assumptions used in the RFR method; (ii) learn how to select the appropriate revenue base in applying the RFR Method; (iii) examine methods for estimating the remaining term of assets valued using the RFR Method; (iv) review key factors associated with estimating a royalty rate and discuss issues pertaining to inclusion of maintenance expenses; and (v) apply the RFR Method to value trade name and internal use technology. Section Eight Excess Earnings Method In Section Eight the participant will: (i) establish a conceptual framework for the use of the EEM; (ii) learn how to identify primary income generating assets; (iii) obtain an understanding of the application of the EEM and a comprehension of the key assumptions of the EEM including expense adjustments, discount rates and contributory asset charges; (iv) obtain an overview of how to estimate revenue base and remaining term for different assets valued using the EEM; (v) learn how to recognize issues impacting attrition analysis; and (vi) obtain a basic understanding of the process of lifecycle analysis. Section Nine Overview of International Financial Reporting Standards Relating to Purchase Price Allocations and Impairment Testing In Section Nine the participant will obtain an awareness and understanding of the key differences between CICA, FASB and IFRS guidance relating to purchase price allocations and impairment tests.

4 About the Instructors Vincent Conte, CA, CFA, CBV Vince Conte is a Senior Manager with Deloitte s Valuations practice in Toronto. He specializes in the valuation of business interests and intangible assets for purposes of M&A, restructuring, litigation, taxation and financial reporting. Financial reporting engagements have been in the context of goodwill impairment testing and valuation of intangible assets. Intangible assets valued and audited include technology, patents, customer relationships, contracts, permits, and brand among others. His clients include both public and private enterprises in a wide variety of industries with significant experience in financial services, mining and technology. Vince is a Chartered Accountant, Chartered Business Valuator and holds the Chartered Financial Analyst designation. Jim Horvath, FCBV Jim Horvath is a Partner with Deloitte, who over the past 33 years has specialized in business and securities valuations, and related intellectual property. Having completed over 3,000 valuation assignments, including the supervision of large, complex multidiscipline valuation engagements, he has worked in a wide variety of industries and given expert testimony on valuation matters on multiple engagements. Jim also has extensive international experience, having worked on valuations, mergers, and acquisitions in over 60 countries. He has authored several books and numerous articles on valuation, and both in Canada and internationally is a frequent speaker on valuation methods and issues. Munish Mohendroo, CBV, MBA(UK), CMA(UK) Munish is a Vice-President in the Toronto Valuation Services Group within Ernst & Young LLP. He has over 12 years of business valuation and corporate finance experience. Munish provides valuation services across a spectrum of industries for matters such as acquisitions, divestitures, financings, reorganizations, financial reporting and option arrangements. He provides business valuation services to both public and private companies related to the value of businesses, underlying business securities and complex assets (such as intangible assets and intellectual property, stock options, warrants and conversion rights). Munish has experience in providing financial modeling support services and has undertaken numerous financial feasibility consulting exercises. He has worked closely with a variety of clients requiring input on investment and/or divestment decisions, to provide independent and financial assessments in respect of business and financial issues.

5 Prerequisites This is an intermediate course and it is expected that participants will be experienced professionals who are familiar with general valuation concepts and methodologies. In addition, participants should have read the required textbook; see below. Required Textbook Participants are required to purchase and read the following textbook prior to the seminar: Valuation for Financial Reporting: Fair Value Measurements and Reporting, Intangible Assets, Goodwill and Impairment, 2nd Edition by Michael J. Mard, James R. Hitchner, Steven D. Hyden. ISBN # This book is available through John Wiley and Sons, Canada; seminar participants can purchase online for a 15% discount details and discount code will be sent with the registration confirmation. Continuing Education Participants will earn 21 CE hours for full seminar attendance. Please contact the hotel directly: Accommodations Fees Early registration by September 24 th Sutton Place Hotel 845 Burrard Street Vancouver, BC V6Z 2K6 (604) Members (CICBV and ASA, CFA), Students and Subscribers: $1, ($1, plus $59.75 GST, #R ) Guests: $1, ($1, plus $69.75 GST, #R ) Late registration after September 24 th Members (CICBV and ASA, CFA), Students and Subscribers: $1, ($1, plus $74.75 GST, #R ) Guests: $1, ($1, plus $84.75 GST, #R ) Fee includes participant s manual, breakfast, lunch and 2 coffee breaks. NOTE: fee does not include textbook

6 Registration Please complete the enclosed Registration Form and return with payment as soon as possible. Space is limited and will be available on a first come basis only. Upon payment, you will be sent a receipt/confirmation by (including a link to purchase the textbook). We suggest however that you do not finalize your travel arrangements until after the early registration deadline (Sept. 24 th ), to ensure the seminar has sufficient numbers to run (we will contact you shortly after Sept. 24 th to confirm this). Cancellation Policy Refunds less a $ administration fee will be made for cancellations received by October 27 th. Refunds will not be given for cancellations after October 27 th, however substitutions are permitted.

7 REGISTRATION FORM CICBV/ASA three-day joint seminar Valuation of Intangible Assets for Financial Reporting November 5-7, 2008, Vancouver, BC Please complete form and submit with payment to: The Canadian Institute of Chartered Business Valuators 277 Wellington St. West, Toronto, ON, M5V 3H2 Fax: Phone: x221 Attn: Jennifer Warlow NAME COMPANY ADDRESS PHONE (Bus) FAX (Bus) Please indicate any dietary restrictions: FEES: By Sept. 24: CBV ASA Student Subscriber CFA: $1, Guest: $1, After Sept. 24: CBV ASA Student Subscriber CFA: $1, Guest: $1, NOTE: textbook not included in fee; purchase details will be sent with confirmation. Cheque enclosed VISA: MASTERCARD: Account Number Exp. Date Name of Cardholder Signature CANCELLATION POLICY: Refunds less a $ administration fee will be made for cancellations received by October 27 th. No refunds for cancellations made after October 27 th, 2008, however substitutions are permitted. NOTE: Space is limited; please register early to secure a seat.