|
|
| Valuing Closely-Held Farms and Ranches with Economic Reality (1510Q) |
Course CPE: 2 hours
Field(s) of Study: Accounting (Governmental)–2 hrs
Program Level: Overview
Prerequisites: None required. These overview programs may be appropriate for professionals at all organizational levels.
Advanced Preparation: None
Delivery Method: QAS Self-Study
|
Item
Number: 21BV0621VFR
Shipping Weight: 0lbs. 0oz. |
| Price:
$147.00 |
|
|
|
|
Recording Date: June 21, 2021
Presenter: Ericka Heiser
Program Description:
Valuing a minority interest in an entity with farm/ranch ownership and/or operations can be tricky. As analysts, we are bound to valuation theory, but economic reality must play a role as well. As valuation professionals know, an owner of a minority interest cannot force liquidation of assets, so that precludes us from strictly employing the asset approach. However, cash flows from farms/ranches are very low in relation to the underlying ground; as such, the value determined by employing the income approach is significantly lower than what a hypothetical buyer of such minority interest would likely pay. Therefore, we have a conundrum. The answer to such conundrum is the weighted approach! Join Ericka for this must-attend presentation!
After completing this course, you will be able to:
- Identify the unique circumstances of owning a minority interest in an entity that owns and operates a farm/ranch
- Identify how components of entity’s partnership/operating agreement can affect how to weight the approaches, or if it is even appropriate
- Determine how to weight valuation approaches to determine a value of a minority interest using both valuation theory and economic realities
- Select and explain applicable court cases and how they support such approach
- Determine the rate of return study of publicly-held real estate limited partnerships and REITs to appropriately calculate the capitalization rate in farm/ranch valuations
- Differentiate knowledge of discounts for lack of control and marketability as they pertain to farm/ranch entities
- Identify the weighted approach and the appropriate weighting
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) 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. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
|
|
|
