Reconciling Discount Rates for Intangible Asset Valuation in PPAs


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Feb 13 2025 29 mins   1

Maryellen and Ross delve into the subjectivity and controversy surrounding discount rates, the importance of understanding the asset and forecast inputs, and the application of market participant assumptions. Including these key takeaways:

  • Subjectivity in Discount Rates: Understanding the significant subjectivity and controversy in determining discount rates.
  • Qualitative Assessments: The role of qualitative assessments in aligning discount rates with associated risks.
  • Resources and Guides: Utilizing available resources to enhance valuation analyses.

Continue reading to learn about key resources available at AICPA-CIMA.com to improve your valuation analyses.

Guests
Maryellen Galuchie, CPA/ABV, Managing Director, Advisory Services, Grant Thornton
Ross McSwain, ABV, Sr. Manager, Advisory Services, Grant Thornton
Host Nene Glenn Gianfala, CPA/ABV, Vice President – Valuation Advisory Group, Chafe & Associates

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RESOURCES FOR FURTHER EXPLORATION
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Available for purchase Accounting and Valuation guides - Business Combinations

2024 AICPA & CIMA Forensic & Valuation Services Conference - Full conference package Session only: Determining the Appropriate Discount Rate for Valuing Intangible Assets in a PPA

Exclusive content available with AICPA FVS Section membership: Click here to join this active community of your FVS peers. You will get 16 credits of complimentary CPE and access to rich technical content

Valuations for Financial Reporting Toolkit - A resource for professionals who prepare valuations for financial reporting purposes

From the FVS Valuation Podcast archives

LEARN MORE ABOUT THE FOLLOWING AICPA CREDENTIALS:

Accredited in Business Valuation (ABV®)Visit the home page and check out the ABV infographic

Certified in the Valuation of Financial Instruments (CVFI®)Visit the home page and check out the CVFI infographic

Certified in Financial Forensics (CFF®) - Visit the home page and check out the CFF infographic

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