Introduction .01-.11
History and Organization of This Guide .05-.11
1 Valuation Techniques Used to Measure Fair Value of In-Process Research and Development Assets .01-.34
Introduction .01-.05
Cost Approach .06-.09
Market Approach .10-.12
Income Approach .13-.34
2 Definition of and Accounting for Assets Acquired in a Business Combination That Are to Be Used in Research and Development Activities .01-.68
Introduction .01-.05
Key Concepts .06-.38
Recognition of Assets Acquired in a Business Combination .06-.15
Attributes of an Acquired IPR&D Project .16-.17
Unit of Account .18-.24
Core Technology .25-.27
Assets Held for Sale .28
Defensive IPR&D Assets .29-.33
Temporarily Idled or Abandoned Assets .34-.35
Completed Intangible Assets Used in R&D Activities .36-.37
Tangible Assets Used in R&D Activities .38
Explanatory Comments .39-.68
Scope of R&D Activities .39-.43
Specific IPR&D Projects—Life Cycle .44-.47
Specific IPR&D Projects—Substance .48-.53
Specific IPR&D Projects—Incompleteness .54-.63
Questions and Answers—Miscellaneous .64-.68
3 Accounting for Assets Acquired in an Asset Acquisition That Are to Be Used in Research and Development Activities .01-.31
Introduction .01-.09
Key Concepts .10-.12
Key Differences in the Accounting for Asset Acquisitions and Business Combinations .10
Relevant Accounting Guidance .11-.12
Explanatory Comments .13-.31
Alternative Future Use .13-.27
Questions and Answers—Miscellaneous .28-.31
4 Subsequent Accounting for Acquired Intangible Assets That Are to Be Used in Research and Development Activities .01-.86
Introduction .01
Business Combinations .02-.79
Accounting for Indefinite-Lived IPR&D Assets .10-.31
Accounting for Assets Resulting From R&D Activities .32-.79
Income Tax Considerations .80-.82
Valuation Allowance Assessments .80-.81
Identifying the Applicable Tax Rate to Calculate Deferred Tax Assets and Liabilities .82
Additional Considerations for Asset Acquisitions .83-.86
5 Disclosures of Assets Acquired That Are to Be Used in Research and Development Activities .01-.12
Business Combinations .01-.07
Additional Considerations for Asset Acquisitions .08-.12
Questions and Answers—Asset Acquisitions .11-.12
6 Valuation of In-Process Research and Development Assets .01-.200
Introduction .01-.02
Considerations Related to FASB ASC 820 .03-.25
Overview .03-.05
Identification of Market Participants .06-.14
Highest and Best Use for Nonfinancial Assets .15-.25
Use of Prospective Financial Information .26-.78
Overview .26-.27
Steps .28-.78
Application of the Multiperiod Excess Earnings Method to IPR&D Assets .79-.138
Overview .79-.81
Steps .82-.132
Additional Considerations for the Multiperiod Excess Earnings Method .133-.136
Illustrative Example: Multiperiod Excess Earnings Method .137-.138
Application of Relief From Royalty to IPR&D Assets .139-.153
Overview .139-.141
Steps .142-.151
Illustrative Example: Relief From Royalty Method .152
Additional Considerations for Relief From Royalty Method .153
Application of Decision Tree Analysis to IPR&D Assets .154-.170
Overview .154
Pharmaceutical IPR&D Valuation Example: Decision Tree Analysis .155-.168
6 Valuation of In-Process Research and Development Assets—continued Summary of Decision Tree Analysis .169-.170
Other Methods .171-.172
Valuation Report Considerations .173-.184
Identification and Description of IPR&D Assets .176
Valuation of IPR&D Assets .177-.183
Reconciliation of Value Estimates .184
Comprehensive Example .185-.200
Overview .185-.186
Trade Name .187-.188
Patents .189-.190
Customer Relationships .191-.192
Developed Technology .193-.194
IPR&D .195-.197
Additional Analysis .198-.199
Schedules .200
Glossary
Index of Pronouncements and Other Technical Guidance
Subject Index
Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession’s technical and ethical standards.
The AICPA’s founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.
Ask a Question About this Product More... |