How is a trained and assembled workforce valued?
Trained and assembled workforce is generally only appraised for FASB 141 or FASB 142 in order to determine a value for the customer relationship asset. This is because the customer relationship asset is often considered to be a residual asset and is not seperable from Goodwill (See SFAS 141 paragraph B168-169). In valuing a trained and assembled workforce, i.e. management, salesforce, MIS group, etc., a cost savings approach is often utilized. The savings are quantified by giving consideration to employment advertising, agency fees, reimbursed applicant expenses, relocation expenses, corporate employment staff compensation, line management interview time, departmental orientation time and learning curve inefficiencies.
Trained and assembled workforce is generally only appraised for FASB 141 or FASB 142 in order to determine a value for the customer relationship asset. This is because the customer relationship asset is often considered to be a residual asset and is not separable from Goodwill (See SFAS 141 paragraph B168-169). In valuing a trained and assembled workforce, i.e. management, salesforce, MIS group, etc., a cost savings approach is often utilized. The savings are quantified by giving consideration to employment advertising, agency fees, reimbursed applicant expenses, relocation expenses, corporate employment staff compensation, line management interview time, departmental orientation time and learning curve inefficiencies.
