Valuations for GAAP (Fair Value) Reporting

Valuations for GAAP (Fair Value) Reporting

For both private companies and public registrants, Fair Value has infiltrated Generally Accepted Accounting Principles (GAAP) to create entirely new levels of complexity. In fact, more than 50 GAAP pronouncements and interpretations now reference Fair Value, presenting significant challenges for internal finance departments.

Fair Value's Impact on GAAP

From private company stock valuation to purchase price allocations and goodwill impairment testing, GAAP is ingrained in our services as CPAs, auditors and consultants. We have deep expertise with companies across many industries, and through our subsidiary, MFA Cornerstone Consulting, we are able to incorporate that background in our work as Fair Value specialists. We can quickly pinpoint how a company’s measurement of Fair Value impacts GAAP, appreciating that minor swings in valuation can have a material effect on the numbers.

ASC 718 Stock Compensation

MFA has extensive experience in the area of 409A valuations for stock options and related plans. These same valuations may also be leveraged to address related stock compensation needs for the purpose of financial reporting. Having such a valuation performed can also highlight certain factors that are currently affecting your company’s value.

Goodwill and Intangible Asset Valuations

If your company is growing through acquisition, our team of valuation professionals is equipped to help you with Fair Value financial reporting for purchase price allocations (ASC 805). With a client base ranging from public companies to venture-backed, early-stage start-ups, we have significant experience in valuing a variety of intangible assets, including patents, customer relationships, non-compete agreements, trademarks, in-process research and development and many other complex intangibles.

In addition, as part of ongoing annual financial reporting requirements following an acquisition, we provide comprehensive goodwill and long-lived asset impairment testing reports for ASC 350 and ASC 360. If your company has merged operations following an acquisition, operates several reporting units or has reporting requirements under U.S. GAAP and IFRS, impairment testing can quickly become a challenging exercise. We have a wide range of experience in addressing this intricate type of engagement and can help alleviate much of the annual reporting burden.

Fair Value Determinations for Financial Instruments

MFA is an excellent choice for Fair Value determinations of your company’s financial instruments. Through Monte Carlo simulation or other more traditional valuation methods, we can ascertain the Fair Value of derivative assets or liabilities, and synthetic equity positions such as management carve-outs or stock appreciation rights.

Full Spectrum of Valuation Services for GAAP (Fair Value) Reporting

  • ASC 718 Stock Compensation
  • ASC 805 Purchase Price Allocation
  • ASC 815 Embedded Derivatives and Hedging
  • ASC 820 Fair Value Measurements
  • ASC 825 Fair Value of Financial Instruments
  • ASC 350 Goodwill Impairment
  • ASC 360 Intangible Asset Impairment

RELATED TEAM MEMBERS

William Duratti Lead Partner – Valuation (978) 557-5305
Gregg Hamilton-Piercy Partner – Valuation Practice (514) 903-6966

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Valuation Practice Brochure

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