Fair Value & Financial Statement Reporting

Preparing financial statements can be a complex process with frequent change that demands diligence to stay compliant with generally accepted accounting principles. The Financial Accounting Standards Board (FASB) frequently issues new Accounting Standard Codification (ASC) sections that can affect your financial statements. Whether your company is completing a business combination, issuing stock options, or holding intangible assets, you may need a valuation for financial 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 provide credible and defensible analyses.

ASC Overviews

Each ASC has its own intricacies that may affect your company in different ways or require adjustments to your previous practices. Following are three that relate to fair value valuations.

Stock-Based Compensation (ASC 718)

Determining common stock value can be a complicated task, especially if several classes of stock are issued.

For publicly-traded companies, stock value is set by the marketplace. However, closely-held-private companies face a valuation issue: their stock value is not readily determinable. Nevertheless, stock-based compensation awards must be valued, and the awards must be expensed as compensation.

Regardless of the company type, performing a detailed valuation company’s common stock can help determine the value of your stock options.

Business Combinations (ASC 805) and Intangibles (ASC 350)

To better reflect investments made in acquired companies, identifiable intangible assets of companies that you acquire must be valued and recorded under ASC 805. Under ASC 350, these intangible assets and goodwill must be evaluated qualitatively or quantitatively for impairment on an annual basis.

Other Fair Value Measurements (ASC 820)

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

Valuation Scenarios

We 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 company
  • Business succession
  • Shareholder disputes
  • Corporate planning
  • Estate and gift reporting

For a more complete list of our valuations services, visit our main valuations page.

Insights


Article
Learn how the new lease accounting standard, Accounting Standards Codification (ASC) 842, could affect your financial statements.

Article
New lease accounting rules go into effect at the end of 2018. Learn about a three-pronged approach to preparing for their adoption.

Article
Learn how the FASB’s new lease accounting guidance affects embedded leases and how this could change your balance sheet.

Webcast
The new lease accounting standard will directly affect how technology and life sciences companies operate—potentially changing lease classifications and impacting compliance and performance ratios. Implementing the standard, which goes into effect for public business entities on December 15, 2018, and on December 15, 2019, for all other entities, will require significant time and energy. Join us for a webcast addressing what the new standard could mean for your business.

Webcast
The oil and gas industry may face significant changes to lease reporting requirements. In this webcast, we address new standards introduced by the FASB’s Accounting Standards Codification (ASC) 842—and their effects on disclosing information about leasing arrangements.

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