Fair Value Financial Reporting
Intangible Asset Valuation
Intangible assets valued by CVI include but are not exclusive to the following:
Credit information files
Customer & client lists
Food flavorings & recipes
Non compete covenants
Options, warrants, grants
Retail shelf space
Trained & assembled workforce
Trademark and trade names
Purchase Price Allocation
In general, the purpose of retaining a business valuation firm in relation to a purchase price allocation is to help identify and independently value appropriate intangible assets. The value of the identified assets is then combined with the firm’s other assets and considered against liabilities and price paid in order to recognize the net residual amount to be designated as goodwill.
CVI’s professionals have led several purchase price allocation engagements. Purchase price allocations often are complex transactions that if not managed properly, can become excessively expensive. Here at CVI, we take a collaborative approach by fostering communication between our appraisers, auditors, management and other professionals; thereby avoiding costly delays and/or misunderstandings.
Financial Accounting Standards Board (FASB) statements related to purchase price allocation and intangible asset valuation include the following:
- ASC 805 Business Combinations
- ASC 350 Goodwill and Other Intangible Assets
Stock Based Compensation
The valuation of stock options relies on several assumptions made by both top management and the appraiser. An independent business valuation firm, such as CVI, can help by determining the Fair Value of the underlying stock and by collaborating with management to develop reasonable and supportable assumptions. Our experts have performed several stock option valuation engagements through which our methodology, due diligence and experience often leads to a significantly expedited review process.
FASB statements related to stock based compensation include the following:
- ASC 718 & 305 Accounting for Stock Based Compensation
IRS regulations related to stock based compensation include the following:
Other FASB statements related to the topics discussed above include:
- ASC 820 Fair Value Measurements