Purchase Price Allocation

Re: Identifiable Intangible Assets

1) FASB 141/142 However, tax deductibility is not a GAAP item, it is a tax-related item; as such you won't find info on it in the FASBs. Impairment tests are for Goodwill. Don't confuse book vs tax! 2) Tax accounting for stock deal falls under Section 368, Tax-Free Reorg. Intangibles are amortized ... Read More

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by WST Expert 1.

added 10 years ago

Re: Identifiable Intangible Assets

(1) If i understand you correctly, you're saying that the differentiation between infinite/finite-lived intangibles as strictly a Tax thing, and that all intangibles except Goodwill are amortized under GAAP. (2) I understand that I can simply turn off the switch for tax deductibility purposes. Howe... Read More

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by Guest 1.

added 10 years ago

Re: Identifiable Intangible Assets

1) yes
2) deal-specific issues as advised by tax attorneys on each deal might occur

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by WST Expert 1.

added 10 years ago

Re: Identifiable Intangible Assets

(1) I want to disagree with this. After looking through FAS142, it seems there is distinction between finite and infinite intangibles for GAAP, as such: "Opinion 17 presumed that goodwill and all other intangible assets were wasting assets (that is, finite lived), and thus the amounts assigned... Read More

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by Guest 1.

added 10 years ago

Re: Identifiable Intangible Assets

1) You the man! You win! Thank you for digging that up. Forget naught that in addition to tax experts, you will have accountants on the job as well. The short answer is that you need to know enough, but you don't need to master this. Why not? Because you will NEVER get the right answer because th... Read More

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by WST Expert 1.

added 10 years ago

Re: Identifiable Intangible Assets

Thanks! This was all very helpful guidance btw!

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by Guest 1.

added 10 years ago

Re: Identifiable Intangible Assets

No worries, and that's what we're here for. Keep in mind that you want to focus on what's material. It's more important to get your projection model and valuation correct than this very fine specific nuance on purchase price allocation. That doesn't mean we don't want to be correct, but sometimes i... Read More

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by WST Expert 1.

added 10 years ago

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