FINANCIAL REPORTING VALUATION

The FASB and the SEC are continually expanding the use of fair value measurements within financial accounting. The evolution from historic cost basis to fair value measurement has greatly increased the role of valuation specialists in the financial reporting process. Naturally, increased reliance on fair value measurements results in increased scrutiny from auditors and the SEC.

BVA regularly performs fair value analyses for the following purposes:

• Purchase price allocations including valuation of intangible assets under FASB ASC topic 805 (formerly SFAS 141R)
• Goodwill impairment testing under FASB ASC topic 350 (formerly SFAS 142)
• Impairment testing of long-lived assets under FASB ASC topic 360 (formerly SFAS 144)
• Stock-based compensation under FASB ASC topic 718 (formerly SFAS 123R)
• Determining fair value of financial assets (including derivatives and swaps) under FASB ASC topic 820 (formerly SFAS 157)

Privately-held companies are also faced with the task of determining the value of their stock prior to setting the stock option exercise price as required by IRC §409A.  BVA regularly performs valuation of companies for this purpose, including venture-backed companies with multiple rounds of preferred equity financing.

Our reports have been reviewed and accepted by auditors and valuation specialists with the Big 4 accounting firms as well as other regional and national accounting firms. Our clients include public and private companies and our valuations have been reviewed by the SEC and PCAOB.

To provide a client with the highest quality of service, a valuation specialist must:

1. Keep up-to-date on the latest revisions to the accounting standards.
2. Interact with the audit team to assist management with determining their needs.
3. Educate management on the details of the analysis.
4. Provide analysis that clearly describes the methodology and assumptions.
5. Explain the analysis during the audit review.

BVA takes pride in meeting all of these requirements.  Our professionals have the education, experience, skills and certifications required to provide a quality analysis and are knowledgeable of the accounting and valuation standards governing valuations performed for financial reporting.