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WHAT IS GOODWILL?

What is Goodwill?

In our opinion, FASB’s analysis of goodwill provided in Basis for Conclusion of FAS 141, Business Combinations provides well-structured and cohesive conceptual understanding of goodwill. This understanding can be used in addressing practical valuation and accounting questions related to transactions with businesses.
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Is ChatGPT taking over valuation?

The purpose of this publication is to assess ChatGPT’s ability to access certain valuation information, answer specific valuation questions.
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Backsolve Valuation Method

The main idea behind the Backsolve method is to use recent transaction price for one of the classes of shares, Black-Scholes option pricing model and other additional information that can be derived from company’s capital structure to determine estimated fair value (FV) of equity.
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Estimating Borrowing Rates

Pre-tax cost of debt is used in financial reporting in accounting for leases and application of effective interest rate method in accounting for debt.
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Confusion About Fair Values

Use of fair market value standard of value in current valuation practices causes confusion and results in additional unnecessary work.
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