Determining Fair Value Of Liabilities In Acquisitions

Law360, New York (December 16, 2009, 3:15 PM EST) -- Changes in financial accounting standards relating to the determination and application of fair value have expanded the nature of the valuation exercise that needs to be performed in strategic investments and acquisitions.

While previously the primary financial task was to verify the existing financial position of the business to be acquired, “fair value” has moved the goalposts to focus on the how assets and liabilities will be valued following the acquisition or investment and, to the extent applicable, determining any potential impact on the fair value...
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