VRC Senior Vice President, Kent Amarante’s article, “Allocated costs in fixed asset registers bring audit risks,” has been published in Accounting Today.

In the piece, Amarante discusses how hidden allocated costs in fixed asset registers can create challenges for valuation professionals, auditors, and finance teams. He reviews why assets affected by purchase accounting under ASC 805, Business Combinations, may require direct cost or market-based valuation approaches instead of traditional cost-trending methods. He says that early identification of allocated costs can help reduce issues like audit risk, reporting delays and valuation costs.

Learn more about the right approach to evaluating allocated costs by reading the full article.