AICPA Issues Accounting and Valuation Guide for IPR&D

The Guide discusses the application of various valuation techniques appropriate for IPR&D.

FASB Endorses PCC’s Accounting Alternatives for Private Companies

Amid controversy, the FASB endorsed the first two accounting alternatives approved by its Private Company Council (PCC).

Market Participant Acquisition Premiums

When valuing a business, determining the control premium is a significant, and often controversial, issue.

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.

Independence Critical When Selecting Opinion Provider

The independence of a fairness or solvency opinion provider is a critical issue that will not be overlooked by regulators or minority shareholders.