Fair Value Measurement: Practical Guidance and Implementation, 2nd Edition

CHAPTER FOURTEEN

Fair Value Measurement Case Study1

LEARNING OBJECTIVES

Mobile Apps Source, Inc. is a fictitious company. The narrative and exhibits in this case study illustrate concepts from the Financial Accounting Standards Board's (FASB) Accounting Standards Codification 820, Fair Value Measurement (ASC 820), FASB ASC 805, Business Combinations (ASC 805), and FASB ASC 350, Intangibles—Goodwill and Other (ASC 350). The case study is intended to provide an integrated illustration of a business combination valuation engagement using the acquisition method and subsequent impairment analysis to illustrate points and provide examples. The case study is not intended to be used for any other purpose. Although the case has been prepared using commonly accepted valuation techniques, there is variation among practitioners within the profession. Others may choose alternative valuation methods and assumptions instead of the ones presented in the case study.

The case study has questions and exhibits intermingled throughout the fact pattern, so that readers can test their understanding of the concepts presented throughout the text. Suggested answers can be found in the Appendix 14A that follows.

After reading this material, readers should be able to apply the concepts presented in the ASC 820, Fair Value Measurement, ASC 805, Business Combinations, and ASC 350, Intangibles—Goodwill and Other. The case study will help readers understand how a valuation specialist applies valuation techniques ...