Fair Value Considerations: Accounting for Embedded Derivatives
Embedded derivatives require valuation at issuance and revaluation at all subsequent quarters with changes in value reported in earnings (non-cash).
New AICPA Guidance Introduces Backsolve and Hybrid Approaches for Valuing Complex Equity Capital Structures
The backsolve method derives from a timely transaction in a private company’s equity.
Challenges in Valuing Contingent Consideration
ASC 805 provides guidance for whether it is contingent consideration or compensation.
PCAOB Comments Increase Auditor Scrutiny of Fair Value Measurements
Auditors have increased scrutiny around management forecasts which provide the foundation for valuation methods based on an income approach.
Valuation Critical Issue for Private Equity as SEC Scrutiny Increases
Under the Dodd-Frank Act, advisers to most private equity firms must register with the Securities and Exchange Commission (SEC).
Carried Interest Popular Form of Incentive Compensation
Since carried interest is tied to performance, it is an effective way for employers to recruit and retain employees.
PCAOB Scrutiny Highlights Importance of Audit Review
The valuation industry has experienced a significant increase in time allocated to auditors in the review process.
Pre-Acquisition Valuation Key Step in Due Diligence Process
Identifying and valuing intangible assets in advance of a purchase has become a valuable step in the due diligence process.
Effective Date for SFAS 141R Approaching Fast
Under SFAS 141R, there will be greater time pressure. SFAS 141 allowed a company one year to complete its purchase accounting.
IASB Issues Business Combinations Statement
Perhaps the most significant difference in approach relates to the way in which contingent liabilities assumed in a business combination are reported.