merverdi

11:13 May 25, 2010 

at all. That was an error on my part, which I realised post-publication. Hence my subsequent attempts to clarify this for future reference. We need all the spanners we can get, as long as they're constructive and help others avoid making errors ;-)

10:58 May 25, 2010 

Far be it for me to throw any spanners in the works here, but translating merverdi as fair value would seem a bit odd. The standard translation for fair value is virkelig verdi - which is a fair way from merverdi. Sorry if I am being a pain.

10:11 May 25, 2010 

Just giving some options as there is no single correct answer. Excess value is not a set term in English and without some kind of explanation it is a bit meaningless (begs the question: excess of what over what?). It's a bit like "laveste verdi prinsipp" - in English we have to spell out what this means: "lower of cost and net realisable value".

06:05 May 25, 2010 

From (IFRS 3 Business Combinations) :
"This IFRS ..requires goodwill acquired in a business combination to be recognised by the acquirer as an asset from the acquisition date, initially measured as the excess of the cost of the business combination over the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities recognised in accordance with (d) above."

"requires the acquirer to reassess the identification and measurement of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the business combination if the acquirer’s interest in the net fair value of the items recognised in accordance with (d) above exceeds the cost of the combination. Any excess remaining after that reassessment must be recognised by the acquirer immediately in profit or loss." (IFRS 3 Business Combinations).

Conclusion: "excess", "excess value" or "excess (value) over fair value" all seem to be standard terms.

20:39 May 24, 2010 

=virkelig verdi, NHH. I wondered what the exact translation for this is.

20:16 May 24, 2010 

Your best bet seems to be excess value.

19:48 May 24, 2010 

forretningsspråk' : Merverdi = excess value, dvs. verdi av eiendeler utover bokført verdi (=value of assets in excess of book value). Hope it helps!

19:09 May 24, 2010 

But the question was what would be a good Englisg translation when the source term was merverdi. I am sure there is a more complex Norwegian term that would have been used if excess value was the intended meaning.

17:56 May 24, 2010 

I think this would be ok in your context.

17:31 May 24, 2010 

I think this is it: "the amount of any excess of the fair value of the acquiree's identifiable net assets over the cost of acquisition, and the line item in the income statement in which the excess is recognised."
"a description of the factors that contributed to a cost of acquisition that results in the recognition of goodwill, or a description of the nature of any excess of the fair value of the acquiree's identifiable net assets over the cost of acquisition " (http://www.iasplus.com/agenda/buscomb.htm )