ASC 805 codifies the requirements for purchase price allocations in business combinations, including valuation of assets acquired and liabilities assumed. By recognizing and accurately valuing tangible and intangible assets, and allocating the purchase price in a manner compliant with the standards, companies ensure precise financial reporting and enhanced transparency.

Understanding equity valuation is crucial for public and private entities, especially in accordance with ASC 718 and IRC 409A. These standards mandate how firms should value employee stock options and similar equity instruments, including Profits Interest Units (PIUs). PIUs are a unique equity compensation method for LLCs, representing a share in the company’s future profits without a stake in the current value. In many circumstances, aligning with IRC 409A is vital to avoid adverse tax consequences. Valuation methodologies under ASC 718 are multi-faceted, encompassing techniques such as the Black-Scholes option pricing model and Monte Carlo simulation. Through accurate equity valuation practices, companies are better positioned to attract and retain talent, ultimately driving organizational growth in a competitive marketplace.

ASC 350 and ASC 360 are pivotal standards governing goodwill and asset impairments, respectively, ensuring a transparent approach towards financial reporting. ASC 350 mandates the testing of goodwill for impairment annually or more frequently if indications of potential impairment arise. Concurrently, ASC 360 prescribes a methodology for the impairment of long-lived assets, promoting accurate representation of an entity’s financial position.

ASC 815, governing derivatives and hedging, establishes guidelines for recognizing and measuring derivative instruments and hedging activities. Adherence to ASC 815 ensures companies accurately depict their financial position and risks associated with derivatives, fostering informed decision-making amongst stakeholders and compliance with regulatory standards.

Fresh Start Accounting for companies emerging from bankruptcy provides a clean slate financially. By revaluing assets and liabilities to fair value, FSA aligns a company’s book value to reality. This practice, governed by regulatory frameworks, allows for a more accurate representation of a company’s financial health post-restructuring, which is crucial for investors, creditors, and other stakeholders.

ASC 323 outlines the accounting treatment for investments in equity securities and other entities, ensuring a standardized approach towards recognizing, measuring, and disclosing these investments.

ASC 842 provides the guidelines for lease accounting, with the Incremental Borrowing Rate (IBR) as a pivotal metric. The IBR, essentially the interest rate a lessee would incur to borrow over a similar term, and with similar security, the funds necessary to obtain an asset, is crucial for lease liability determination. Adherence to ASC 842’s directives on IBR ensures a precise, market-reflective estimate. A synthetic credit rating can be employed by companies lacking an explicit external credit rating. This synthetic rating, derived from financial metrics and comparisons to rated peers, aids in estimating a more accurate IBR by aligning a company’s credit risk with prevailing market borrowing rates.

Estate and Gift Tax Valuation is a nuanced practice area that requires a precise coordination between legal mandates and financial theory. This valuation practice area requires strict accordance with tax laws and IRS guidelines.

Our experienced team has strong modeling and data skills, including machine learning techniques, with a history of completing significant consulting and corporate finance engagements. We have assisted clients with financial modeling, statistical analysis, litigation support, and transactions.

We have significant experience in the provision of valuation services for dispute resolution including buy/sell agreements, mediation, and other purposes.