The original Statement 141 addressed the use of fair value when recording a business acquisition.
The revised Statement 141R included a number of changes, including the following:
Changed the definition of a business.
Equity securities issued as part of an acquisition are valued on the closing date.
Includes an estimated fair value for any earnout provisions.
Acquisition costs are charged off separately.
When deriving a valuation for acquiree assets, can use a valuation firm to develop a valuation report. This report is more defensible, since these firms have a lot of expertise. A valuation project typically takes 4-6 weeks, and costs $15,000-$30,000.