Fair Value & Financial Statement Reporting

The Financial Accounting Standards Board (FASB) continues to issue new financial accounting standards that affect how businesses prepare and issue financial statements. Many financial and tax reporting circumstances require qualified, independent valuation services. When a company transfers or sells equity interests, issues stock options, or goes public, a valuation may be  required for reporting purposes. To help you meet these reporting and valuation requirements, we offer a team of qualified valuation professionals who have a comprehensive understanding of the issues and can provide credible and defensible analyses.

Our team is well versed in the challenges of fair value and financial statement reporting. We are experienced in providing the necessary valuation services to meet SEC and financial reporting requirements within the framework of the Accounting Standard Codification (ASC)  sections 718 – Stock Based Compensation, 805 – Business Combinations,  350 – Intangibles and 820 – Fair Value Measurements and Disclosures.

Stock Based Compensation (ASC 718)

Determining stock value can be a complicated task, especially if several rounds of stock have been issued. The marketplace sets the value of publicly-traded stock, so the value of options to buy this stock can be readily calculated. However, if the company is a closely held private company, stock-based compensation raises a valuation issue. The companies that offer stock-based compensation awards must now be valued, and the awards must be expensed as compensation. We can provide the detailed financial analysis of the company and comparable public companies you need to determine the value of the stock option.

Purchase Price Allocation (ASC 805)

ASC 805 and 350 (pre-codification SFAS Nos. 141(R) and 142) were established to better reflect investments made in acquired companies, and to provide additional information regarding acquired intangible assets. To meet these accounting standards, you need to test these assets and liabilities values annually, at a minimum. We can help.

Fair Value Measurement (ASC 820)

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. We can help you determine a fair value measurement based on the assumptions that market participants would use in pricing the asset or liability.

Additional Services

In addition to helping you to meet the above standards, we can also provide a determination of value or valuation consulting for:

  • Option price setting under Internal Revenue Code (IRC) Section 409A
  • Purchase or sale of a practice
  • Business succession
  • Shareholder disputes
  • Corporate planning
  • Estate and gift reporting

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