Marshall & Stevens is a resource for companies in need of valuations for compliance with domestic and international financial reporting standards.
Through regular dialogue with audit firms across the country as well as participation in accounting and valuation industry task forces, committees and conferences, our valuation professionals keep up to date on the latest standards and interpretations while providing cost-effective solutions for our clients.
Overview of Key Financial Reporting Valuation Topics
Marshall & Stevens’ professionals keep up to date on the latest accounting guidance and interpretations by engaging in regular dialogue with multiple audit firms, participation in accounting and valuation industry task forces, committees, and conferences.
1. Purchase Price Allocations: FASB ASC 805 and
IFRS 3 – Business Combinations
The consideration paid to acquire an enterprise must be allocated to the underlying assets to set the opening balance sheet.
The allocation exercise includes the valuation of the transaction consideration, including any contingent consideration, rollover equity or non-controlling interests, as well as tangible and intangible assets
Engaging Marshall & Stevens, a firm with a proficiency in business combinations as well as the inhouse capability to value intangible and tangible assets (real estate and equipment), can save acquirers’ time and expense including reducing the time and fee required in audit review.
2. Testing for Impairment of Goodwill and Indefinite
Lived Assets: FASB ASC 350 Testing for Impairment of
Long-Lived Assets: FASB ASC 360 Impairment of Assets: IAS 36
Marshall & Stevens is a multidisciplinary firm with a great deal of experience valuing equity, intangible assets, real estate, and fixed assets for potential impairment.
3. Valuation of Equity Compensation: FASB ASC 718
(IRC 409A) and IFRS 2
A valuation for compliance with ASC 718 generally must also comply with Internal Revenue Code 409A, for US tax reporting purposes.
4. Derivatives and Financial Instruments
ASC 320: Investments – Debt and Equity Securities
ASC 815: Derivatives and Hedging
ASC 946: Financial Services – Investment Companies
Complex financial modeling techniques are required to value some of these instruments, including: Black-Scholes Option Pricing Model, Binomial Lattice and Monte Carlo.
Our specialists have the knowledge and experience required to value the many forms of illiquid investments covered by the guidance
listed above.
5. Fresh Start Accounting Valuation: ASC 852 – Reorganizations
Financial reporting requirements associated with an emergence from Chapter 11 of the Bankruptcy Code include the restatement of the company’s balance sheet, similar to an ASC 805 (purchase price allocation) analysis.
Our Financial, Fixed Asset, and Real Estate specialists provide the required valuation of the subject intangible and tangible assets to meet the client’s need for a fresh start balance sheet.
