The issue with historic cost valuation in my opinion is that it
doesn't give account to intangible assets enough. Take for instance
Coca-Cola - that brand name is worth almost $23 billion. If it is not
included in the set of Financial Statements (since it wasn't
acquired), it just provides incorrect valuation.

disneyfis...[at]gmail.com wrote:
- quote -

There are rumors of Miley5 floating on Nasdaq at $1.25 million in
goodwill. The float will be its only valuation, since Accounting
Standards and IASB and FASB don't allow interllay generated goodwill
to be recognized.

Rumors from Meryl Lynch sources note 500,000 ordinary shares at
around
$2.50. Around 30% of the Company was likely to be sold, with some
rumors AOL Time Warner is purchasing a 15% stake at $2.80 per
ordinary
share, a $210,000 investment. This values the private stake at
$687,000. It is likely price may jump as high as $12.50 per share
once
selling on the stock exchange because of its conservative valuation.


Miley5 stuck to its policy on remaining silent on gossip and
litigation only saying its 4th quarter ratings and revenue results
have consolidated its posoition in the celebrity gossip for teenagers
market.


Some forecast it is an undervaluation because its projection is only
for one year, but the financial controller pointed to the volatility
of the .com boom and didn't want to consistently downvalue goodwil as
MySpace had done.