Financial Reporting

Audited financial statements require increasingly complex valuation.

Our value proposition is simple:  We take this off your plate and get it done, so you can close the audit and focus on growing your business.

The growth of fair value measurements in US GAAP and IFRS has increased the compliance burden on corporate finance executives. We have the knowledge and processes to get this work done effectively and efficiently, helping our clients close their audits on time.

Services
  • Intangible asset valuation under ASC 805 and IFRS 3 for purchase price allocation of business combinations
  • Goodwill and intangible asset impairment testing under ASC 350 and 360 and IAS 36
  • Management stock option and equity-based compensation valuation under ASC 718 and IFRS 2
  • Valuation of derivatives and financial instruments for US GAAP and IFRS
  • Earn-out and contingent consideration liabilities
What is it

The proliferation of fair value measurement requirements in financial reporting in the last decade has added to the growing complexity of US GAAP and IFRS compliance.

This growing complexity is increasing the resources and time required to complete financial statement audits.

Why it matters

CFOs of middle market companies have increasing demands on their time and resources. Growing compliance requirements leave less time for mission-critical work.

These CFOs need resources to complete financial statement audits efficiently so they can focus on growing their businesses.

How we do this well

Our top priority in all of our financial reporting valuation work is getting the work done on time and efficiently through the auditors’ review process.

While this goal is simple, we apply a sophisticated approach based on substantial investments in people, training, and processes to ensure that we consistently deliver.

Our Approach

In working with our clients’ auditors, we take care to understand the culture and expectations of the audit and valuation review team.  We have worked with auditors from public accounting firms ranging from Big 4 to regional and local firms. While financial reporting principles may be universal, we have found that there are nuances in how each public accounting firm approaches fair value and the review process.

We have found that by tailoring our approach to the specific audit team we are working with, we can increase the speed and efficiency of the review process for our clients.

Staff and Training

Our professionals have developed highly specialized skills for determining the fair value of intangible assets and complex financial instruments.  We have developed these skills through years of active practice, formal training through the American Society of Appraisers, and productive collaboration with our clients’ auditors.

The state of the art in fair value measurements is constantly evolving.  Because of our ongoing engagement with the fair value community through conferences, training, and collaboration with the auditors, we are continuously exposed to the latest thinking on fair value.  We leverage this engagement to adopt industry best-practices as they develop. Because of this, we are able to deliver analyses that meets the auditor’s review expectations, reducing the time and resources required to complete the review.

Our Process

We have developed a highly effective process based on three fundamental principles:

Minimize the disruption to the client

Provide the right documentation for the auditors to review efficiently

Collaborate with the auditors for an efficient review process

Our value proposition to our financial reporting clients is one of efficiency.  To that end, we are highly sensitive to the demands we place on your time.  We take care to organize our questions and limit our requests to only what is necessary.

Our fair value measurement methodologies are time-tested, based on generally-accepted principles, and frequently updated to incorporate the evolving state-of-the-art.  We structure our reports to provide the information that audit review teams need, organized so that they can find it efficiently.

We respond quickly to audit review questions, providing written responses to satisfy the auditor’s documentation requirements, and holding phone conversations to address more complex topics.

The End Result

An audit that is faster and more efficient, allowing our clients to focus on growing their businesses.