Introduction .01-.11
History and Organization of This Guide .05-.11
1 Valuation Techniques Used to Measure Fair Value of In-Process Research and Development Assets .01-.34
Introduction .01-.05
Cost Approach .06-.09
Market Approach .10-.12
Income Approach .13-.34
2 Definition of and Accounting for Assets Acquired in a Business Combination That Are to Be Used in Research and Development Activities .01-.68
Introduction .01-.05
Key Concepts .06-.38
Recognition of Assets Acquired in a Business Combination .06-.15
Attributes of an Acquired IPR&D Project .16-.17
Unit of Account .18-.24
Core Technology .25-.27
Assets Held for Sale .28
Defensive IPR&D Assets .29-.33
Temporarily Idled or Abandoned Assets .34-.35
Completed Intangible Assets Used in R&D Activities .36-.37
Tangible Assets Used in R&D Activities .38
Explanatory Comments .39-.68
Scope of R&D Activities .39-.43
Specific IPR&D Projects—Life Cycle .44-.47
Specific IPR&D Projects—Substance .48-.53
Specific IPR&D Projects—Incompleteness .54-.63
Questions and Answers—Miscellaneous .64-.68
3 Accounting for Assets Acquired in an Asset Acquisition That Are to Be Used in Research and Development Activities .01-.31
Introduction .01-.09
Key Concepts .10-.12
Key Differences in the Accounting for Asset Acquisitions and Business Combinations .10
Relevant Accounting Guidance .11-.12
Explanatory Comments .13-.31
Alternative Future Use .13-.27
Questions and Answers—Miscellaneous .28-.31
4 Subsequent Accounting for Acquired Intangible Assets That Are to Be Used in Research and Development Activities .01-.86
Introduction .01
Business Combinations .02-.79
Accounting for Indefinite-Lived IPR&D Assets .10-.31
Accounting for Assets Resulting From R&D Activities .32-.79
Income Tax Considerations .80-.82
Valuation Allowance Assessments .80-.81
Identifying the Applicable Tax Rate to Calculate Deferred Tax Assets and Liabilities .82
Additional Considerations for Asset Acquisitions .83-.86
5 Disclosures of Assets Acquired That Are to Be Used in Research and Development Activities .01-.12
Business Combinations .01-.07
Additional Considerations for Asset Acquisitions .08-.12
Questions and Answers—Asset Acquisitions .11-.12
6 Valuation of In-Process Research and Development Assets .01-.200
Introduction .01-.02
Considerations Related to FASB ASC 820 .03-.25
Overview .03-.05
Identification of Market Participants .06-.14
Highest and Best Use for Nonfinancial Assets .15-.25
Use of Prospective Financial Information .26-.78
Overview .26-.27
Steps .28-.78
Application of the Multiperiod Excess Earnings Method to IPR&D Assets .79-.138
Overview .79-.81
Steps .82-.132
Additional Considerations for the Multiperiod Excess Earnings Method .133-.136
Illustrative Example: Multiperiod Excess Earnings Method .137-.138
Application of Relief From Royalty to IPR&D Assets .139-.153
Overview .139-.141
Steps .142-.151
Illustrative Example: Relief From Royalty Method .152
Additional Considerations for Relief From Royalty Method .153
Application of Decision Tree Analysis to IPR&D Assets .154-.170
Overview .154
Pharmaceutical IPR&D Valuation Example: Decision Tree Analysis .155-.168
6 Valuation of In-Process Research and Development Assets—continued Summary of Decision Tree Analysis .169-.170
Other Methods .171-.172
Valuation Report Considerations .173-.184
Identification and Description of IPR&D Assets .176
Valuation of IPR&D Assets .177-.183
Reconciliation of Value Estimates .184
Comprehensive Example .185-.200
Overview .185-.186
Trade Name .187-.188
Patents .189-.190
Customer Relationships .191-.192
Developed Technology .193-.194
IPR&D .195-.197
Additional Analysis .198-.199
Schedules .200
Glossary
Index of Pronouncements and Other Technical Guidance
Subject Index
