WEDNES DAY, OCTOBER 16, 2013 continued
SESSION CONTENT
WEDNES DAY, OCTOBER 16, 2013 continued
9:05- 10:05am Oil and Gas Reserves: From Rock to Bank Jim Harden, ASA, CPG Principal, Valuation Services Leader | Hein & Associates Houston, TX
This presentation will examine how a reserve report is developed, then used as basis of value for cash flow analysis. We will also discuss how differing buyers look at properties differently, what market transactions are telling us, as well as what critical sensitivities are often overlooked by appraisers.
Goodwill Impairment and Fair Value Judgements Dr. Niranjan“ Chips” Chipalkatti, PhD, ACA Professor of Accounting | Seattle University Albers School of Business and Economics Seattle, WA
Mark Zyla, ASA, CPA / ABV, CFA Managing Director | Acuitas, Inc. Atlanta, GA
This session will be presented in two parts. In the first part, Mark will provide the latest in best practices in testing goodwill for impairment. He will discuss issues considered in the recent draft of the AICPA’ s Guide on Testing Goodwill for Impairment. He will also touch on the PCAOB’ s reports on audit deficiencies as they relate to auditing impairments in fair value measurements.
Chips will discuss the results of a recent study examining the perspective of valuation professionals regarding goodwill impairment and related fair value judgments. The objective is to gain important insights into the decision-making processes used in fair value judgments. This study was conducted by Dr Niranjan“ Chips” Chipalkatti, Dr. Valentina Zamora and Dr. Bruce Koch of Seattle University, Albers School of Business and Economics.
The Impact of Recent Court Decisions on Patent Valuations Carmen Eggleston, CPA / ABV, CFF, CFE Managing Director | OverMont Consulting LLC Houston, TX
10:20- 11:50am What’ s New with Control Premiums Carla G. Glass, FASA, CFA Shareholder | Hill Schwartz Spilker Keller Dallas, TX
Jeffrey S. Tarbell, ASA Director | Houlihan Lokey San Francisco, CA
This presentation will review recent developments in the quantification and application of control premiums in both a financial reporting and traditional FMV context. Appraisers have employed control premiums( and, by implication, minority interest discounts) for years. But our understanding of this issue continues to develop and improve. Topics to be addressed include: measurement of the premium; The Appraisal Foundation’ s recent efforts; the issue of whether the so called premium is actually for“ control”; which valuation inputs are determinative of whether a method produces a minority- or control-level of value; and some of the limitations inherent to observed empirical control premium data.
Applications of Monte Carlo Simulation G. William Kennedy, Ph. D., CPA / ABV Director | Berkeley Research Group LLC Boston, MA
A Monte Carlo simulation is a highly recognized analytical tool used in a wide variety of research, investment, and business decision making settings. Monte Carlo simulations harness the power of probability and statistical analysis to examine hundreds or thousands of possible combination of variables and potential outcomes and provide a concise assessment of the range of model outcomes. The session will provide an overview of Monte Carlo simulations; discuss how to select among the alternative inputs and variables used in Monte Carlo simulations; provide illustrations of how to construct models; and provide examples of the use of Real Option analysis and Monte Carlo simulation models in valuation, litigation, and corporate decision making.
12
Over the past two years a number of appellate court decisions including, Lucent, ResQNet, Uniloc and Laser Dynamics have made the claim for patent damages more difficult for the holder of patent rights. As a result, improper consideration of these decisions can result in an overvaluation of patent portfolios. Recent court decisions regarding the appropriate royalty structure for patents that are included in an industry standard will be discussed as well.