Purchase Price Allocations — FAS 141R

Statement of Financial Accounting Standards No. 141 revised (FAS 141R), Business Combinations, governs the accounting and reporting of acquisitions which occur in 2009 and beyond. This standard replaces the previous standard FAS 141 and provides several substantive changes to the methodologies which must be employed when accounting for business combinations. Under this standard, when an acquisition occurs a purchase price allocation must be performed whereby the consideration paid is allocated across a variety of tangible and intangible assets

FAS 141R service includes:

Goodwill and Intangible Asset Impairment — FAS 142 and FAS 144 Statement of Financial Accounting Standards No. 142 (FAS 142) governs the accounting treatment for goodwill and indefinite-lived intangible assets once identified in a business combination. Under the standard these assets are no longer amortized, but rather are tested annually for impairment at the reporting unit level, as well as on an interim basis if an adverse triggering event takes place. If the test is passed, no impairment is recognized and no further analysis is required. If the test fails, an analysis must be performed in order to determine the magnitude of impairment, if any, which is attributable to goodwill.Statement of Financial Accounting Standard No. 144 (FAS 144) governs the accounting treatment of finite-lived intangible assets. Similar to FAS 142, a two-step test is required to determine impairment. However, in contrast to FAS 142, the initial test to determine impairment requires the use of undiscounted cash flows attributable to the finite-lived intangible asset.

FAS 142 and FAS 144 services include:

FAS 142 — Determination of the fair value of the reporting unit using income-, market- and asset-based valuation approaches to determine whether the fair value exceeds the carrying value of the reporting unit’s equity or invested capital

FAS 144 — Determination of the undiscounted cash flows of the subject finite-lived asset to determine whether the asset passes or fails step one of the impairment process