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.

Valuation Integral to Restructurings/Bankruptcies

Obtaining an objective valuation is a key component of the restructuring process.