Main content

FINANCIAL REPORTING

 

PURCHASE PRICE ALLOCATIONS

ASC Topic 805 and IFRS 3 (Business Combinations) – Our team identifies and estimates the fair value (as defined in ASC Topic 820 – Fair Value Measurements and Disclosures) of tangible and intangible assets and liabilities acquired in either a single reporting unit or multiple reporting units. We have expertise in estimating the fair value of contingent consideration at the initial measurement date, as well as subsequent measurement dates. We provide purchase price allocation services both in a pre- and post-deal context.

ASSET IMPAIRMENTS

ASC Topic 360 (Property, Plant and Equipment) and IAS 36 (Impairment of Assets) – Our team tests the recoverability of depreciable, amortizable and/or depletable asset groups, and if the recoverability test is failed, measure the impairment.

GOODWILL AND INDEFINITE-LIVED INTANGIBLE IMPAIRMENTS

ASC Topic 350 (Goodwill) and IAS 36 (Impairment of Assets) – Assess whether goodwill or indefinite-lived
intangible assets are impaired and quantify any impairment as of the test date or in the instance a triggering event has occurred. We perform goodwill impairment services at the reporting unit or cash generating unit level in accordance with the relevant accounting standard.

FRESH-START ACCOUNTING

ASC Topic 852 (Reorganizations) and ASC Topic 805 (Business Combinations) – Allocate the value of a business emerging from bankruptcy to the assets and liabilities of its reporting units. Fresh start accounting is a complex process for most management teams going through a restructuring for the first time. Our seasoned professionals have experience guiding companies through the fresh start accounting process.

STOCK AND Share-BASED COMPENSATION

ASC Topic 718 (Compensation – Stock Compensation) and IFRS 2 (Share-Based Compensation) – For both private and public companies we identify and review the terms of share-based payments issued to employees (e.g. stock options, stock appreciation rights, restricted stock units) and nonemployees (e.g. warrants), and estimate the fair value of these share-based payments on the grant date and at subsequent measurement periods, using appropriate valuation models and assumptions.

PORTFOLIO VALUATION

ASC Topic 820 (Fair Value Measurements and Disclosures) – For alternative asset investors and managers we estimate the fair value of portfolio holdings on either a quarterly or annual basis. The process of portfolio valuation for financial reporting purposes is complex given the accounting standards that must be followed and the level of support required to get signoff from the investment company’s independent auditors.