Wednesday June 8, 2016
8:00a.m. – 5:00p.m.
$300 Member | $325 Non-Member
Radisson Hotel at USC
3540 South Figueroa Street
Los Angeles, CA 90007
ASA/USC 11th Annual Fair Value Conference—Los Angeles
With the release of ASC 350, 805, 820 and 718 (among others), fair value estimates have become increasingly important elements of the accounting process. Consistent with the relative newness of this accounting guidance and the challenges developing fair value estimates, PCAOB inspection reports often note audit deficiencies involving fair value estimates. Also, the SEC has commented publicly about concerns regarding valuations. In recognition of these concerns impacting accountants and appraisers, the American Society of Appraisers’ and University of Southern California Leventhal School of Accounting’s 11th Annual Fair Value Conference—Los Angeles will be held on Wednesday, June 8, 2016 at the Radisson Hotel at USC adjacent to the USC campus. Presentation topics and speakers include:
Although one of the conference organizers is a not-for-profit entity focused on appraisal education and certification, the conference proceedings will be of significant interest to financial executives and accountants. The conference will provide important updates on a range of fair value matters impacting financial reporting. Conference presenters include internationally recognized, senior accounting and valuation professionals at the Big 4 and other leading accounting firms and the FASB and PCAOB. Prior year’s conferences have included representatives of the SEC, FASB and IASB among others.
- I - FASB Update on Fair Value Matters – Adam Kamhi, Valuation Fellow, Financial Accounting Standards Board. Accounting guidance on fair value continues to change. Adam will provide a discussion of key developments of interest at the FASB.
- II – SEC Update – Kristopher Shirley, Professional Accounting Fellow, US Securities and Exchange Commission. Fair value estimates have received significant attention from the SEC. Kris will provide an update on topics of interest to appraisers and accountants that prepare valuations for financial reporting purposes.
- III – Transaction Due Diligence Considerations – Just Added!
Mike Kim, Senior Manager, Razmik Libarian, Senior Manager, Ernst & Young, Transaction Advisory Services. The successful completion and integration of an acquisition that results in enhanced shareholder value typically requires efforts of a broad set of professionals. Among these services, financial due diligence efforts to confirm the quality of earnings and key operating characteristics of a target company are key efforts in confirming the potential contribution of a target to a buyer and establishing a transaction price. Buyers and sellers may disagree on accounting assumptions and the nature of earnings normalization adjustments. This presentation will discuss important elements of pre-acquisition financial due diligence services.
- IV – Valuation Profession Initiative Update – Tony Aaron, Partner, Ernst & Young, Immediate Past Chair, Board of Trustees, The Appraisal Foundation. In December 2011, Paul Beswick (then Acting Chief Accountant at the SEC), commented on a number of concerns regarding the valuation profession. In a December 2013 speech, Mr. Beswick (then Chief Accountant) commented on the fragmented nature of the profession and the “need for structure of the valuation profession so that investors have the confidence in the information they need to make sound investing decisions.” Tony will provide an update on the very significant efforts that are in process to enhance the quality of valuations prepared for financial reporting purposes.
- V – Volatility Estimation and Measurement – Amanda Miller, Executive Director, Complex Securities Valuation Group, Ernst & Young. Valuation models are increasingly moving from single scenario to multiple scenario and other complex models. Volatility estimates are a critical component of an increasing number of fair value measurements. Guidance on the determination of volatility estimates is limited. Amanda will provide an update on best practices in the estimation of volatility estimates.
- VI – Contingent Consideration Task Force Update – Just Added!
Alok Mahajan, Partner, KPMG LLP, Member, Appraisal Practices Board of The Appraisal Foundation, Chair, Contingent Consideration Task Force. The Appraisal Foundation Task Force developing valuation guidance for contingent consideration is nearing the release of a discussion draft of their proposed guide. Contingencies valuation is one of the most challenging areas of valuation with limited guidance. Although the Task Force is focused on contingent consideration, valuation insights should be helpful for many additional valuations.
- VII – Abbreviated Presentations – As energy levels tend to wane at the end of the day, our final presentation slot will include several abbreviated presentations to help keep your energy and interest levels high.
- PCAOB Update – George Wilfert, Deputy Director, Public Company Accounting Oversight Board. Fair value matters continue to be an area where PCAOB Inspection Reports note need for improvement. George will provide an update on recent developments at the PCAOB with a focus on matters impacting fair value determinations.
- Pepperdine Capital Markets Survey Update – Craig Everett, Assistant Professor of Finance, Director, Private Capital Markets Project Graziadio School of Business and Management, Pepperdine University. The development of discount rates for business valuations continues to be an area of concern. Craig will provide an update on the Private Capital Markets Project survey findings.
- Credit Value Adjustments – Anthony Law, Managing Director, Valuation Research Corporation. ASC 820 requires the fair value of over-the-counter contracts, such as interest rate swaps or cross-currency swaps (“swaps”) to include a credit value adjustment (“CVA”) to reflect the potential counterparty default risk. Swaps are private contracts consisting of two counterparties defined by their cash flow obligations. Swaps are defined by their swap rate, notional dollar amount and tenor. Generally the swap rate is established such that the present value of each party’s future obligations essentially offset, meaning the contract has no economic value at inception. As interest rates change and credit spreads fluctuate, the swap will take on a non-zero value that represents an asset to one party and an equivalent liability to the other party. This presentation highlights the concepts influencing the CVA, the inputs necessary to measure the CVA and the variety of approaches available.
- AICPA Fair Value Update – Mark Smith, Technical Director, AICPA. The AICPA has a variety of initiatives in process pertaining to a variety of fair value matters. Mark will provide an update on current developments of interest at the AICPA.
CE/CPE: 8 ASA CE and CPE* credits will be offered for attending the conference.
*ASA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE sponsors.
Schedule Wednesday, June 8, 2016
7:30a.m. - 8:00a.m. - Registration, Continental Breakfast and Networking
8:00a.m. - 8:15a.m. - Introductory Remarks
8:15a.m. - 12:00p.m. - Morning Sessions
12:00p.m. - 1:00p.m. - Lunch
1:00p.m. - 5:00p.m. - Afternoon Sessions
Timely Updates on Topics of Current Interest - The topics represent leading edge topics selected for their importance to professionals that perform financial reporting valuations.
Nationally Recognized Speakers - This is an opportunity to obtain insights from many of the leaders in our profession. In all prior years, we've assembled rosters of nationally recognized speakers.
Practitioner Focus - This conference is focused on the needs of valuation and accounting professionals involved in the development and audit of fair value estimates. Insights can be immediately employed in your technical or business management of your professional practice.
Exceptional Networking Opportunity - With valuation practitioners from the leading accounting firms and top boutique valuation firms, this continues to be an exceptional networking opportunity.
ASA and AICPA Continuing Professional Education - The conference will provide continuing professional education credit by both the American Society of Appraisers (ASA) and the American Institute of Certified Public Accountants (AICPA). This is a timely and cost effective means of obtaining CPE hours for your reaccreditation.
Competitive Pricing - ASA and USC continue to price the conference at an extremely low cost as a benefit to its membership and the community at large.
Continuing Professional Education - Conference qualifies for CE & CPE credits. The American Society of Appraisers is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE sponsors. CPE hours in the area “Auditing and Accounting” will be provided.
Who Should Attend? Appraisers, accountants, financial professionals and others who are responsible for fair value related valuation and reporting.
View attendees from past conferences.
For more information contact Raymond Rath, ASA at email@example.com or (949) 475-2808.
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Sponsorship opportunities available, contact ASA at firstname.lastname@example.org or (800) 272-8258.
*Any opinions presented in the sessions are those of the instructor(s) and do not represent the official position of the firms the individual instructors represent, sponsors or the American Society of Appraisers.