Financial reporting valuation is the process of determining the fair value of assets and liabilities for accounting purposes, typically required under standards like ASC 805 (purchase price allocation) and ASC 350 (impairment testing). Companies use these valuations after acquisitions, for financial reporting compliance, and to support audits.
Financial reporting valuations are typically required for:
Financial reporting valuation works by identifying a company’s assets and liabilities and estimating their fair value using accepted methodologies such as income, market, or cost approaches. Analysts build financial models—often using discounted cash flow or comparable data—to determine what each asset is worth under accounting standards like ASC 805 or ASC 350. These values are then documented in a formal report that supports financial statements and can be reviewed by auditors.
A large of percentage of our senior Financial Valuation professionals have experience working at top 10 audit firms – they did the same review work your audit firm valuation professionals do – so they are a great resource to our clients.
We work with audit firms to focus on materiality and efficiency.
Our Financial, Equipment and Real Estate valuation professionals collaborate on multidisciplinary assignments for an efficient well-integrated product and an easier review process for you and your audit firm.
Marshall & Stevens’ clients include financial investors (private equity funds, business development corporations, etc.) and public and private companies in a broad range of industries.
The most common requested financial reporting valuation services include:
For an example of our engagements, please see our Engagements Page.
For more information, see the service sheets and articles to the right or contact one of the professionals listed below.
Our Financial Reporting Valuation team collaborates with our internal multi-disciplinary professionals to provide the value analyses and fresh independent opinions to fiduciaries, financing sources and investors for public and private company transactions.
Marshall & Stevens has great experience providing independent fairness opinions and solvency opinions for public and private company transactions.
Marshall & Stevens performs portfolio valuations for a large and diverse pool of investments and investment funds.
Marshall & Stevens performs real estate appraisals for financing, estate and gift tax planning and reporting, buy/sell consideration, insurance, easements, property tax, and litigation.
Marshall & Stevens provides appraisals of machinery, equipment, vehicles, and special purpose property for financing, financial reporting, property tax, insurance, and litigation.
We work with our clients and their financial institutions, investors, insurance companies, and other trusted advisors to provide the independent value opinions they require.
If a company has their purchase price allocation and other financial reporting done for compliance with private company GAAP and then goes public (IPO, SPAC, merger, etc.), the financial reporting will have to be redone and restated to meet the public company standard prior to going public. The initial small cost savings of following private company GAAP for acquisitions is far outweighed by the cost to redo the work in the future.
Upon request, we provide diverse value opinions for the same assets based upon the purpose and standard of value to efficiently accommodate the need for financing, financial reporting, tax reporting, and insurance. The efficiency in performing all these analyses at the same time leads to pricing benefits for our clients.
Most companies are diligent about adding acquired assets to their books. A large percentage of companies do not focus on eliminating assets from their books when sold or retired. The asset may have reached a $0 depreciable value, but each asset costs money when it comes to the replacement value for insurance purposes. Why does a 200-bed hospital have 500 beds on its asset list? Why does a 600-seat multiscreen movie theatre have 1,000 seats on its books and a projector from 1993?
We provide preliminary estimates to determine if the fair value step up of the acquired assets is worthwhile to the acquiror.
Each audit firm has their preference for the way certain financial instruments should be valued. We initiate a call with the audit team before performing the analyses to reduce the potential for delays and surprises.
Our specialists have a great deal of experience providing financial reporting valuations for compliance with international and domestic accounting standards.
We focus on efficiency. Our team includes senior valuation professionals with experience working at international audit firms – they did the same review work your audit firm valuation professionals do – making them a great resource to our clients. These specialists understand the materiality thresholds while meeting regulatory requirements.
We provide negative and positive assurance letters upon request.
Marshall & Stevens provides Fairness and Solvency Opinions, valuation analyses, investigative accounting, and expert witness services to assist public and private clients with their important transactions and litigation matters.
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