Accounting Standard Codification (ASC) 805 (formerly known as Financial Accounting Standard (FAS) 141R)
- ASC 805 (formerly known as FAS 141R) provides guidance for accounting and reporting of business combination. As per guidelines stated, an acquirer will recognize at the acquisition date all assets, liabilities and any non-controlling interest in the target company.
- ASC 805 emphasizes that for any activity to be considered as a business, it’s mandatory to have inputs and processes elements which together will be used to generate outputs. An intangible asset should be recognized and recorded as an asset separate from goodwill in some scenarios. Most commonly recorded intangibles assets as per ASC 805 includes:
- Customer Relationships
- Noncompetition Agreement
Our highly trained professionals work primarily for complex purchase price allocation valuations and help clients to make informed and calculated strategic decisions.
Accounting Standard Codification (ASC) 350 (formerly known as Financial Accounting Standard (FAS) 142)
- As per ASC 350 (formerly known as FAS 142) guidelines (Goodwill Impairment), companies performs goodwill impairment annual test at each reporting unit level. Goodwill impairment test is performed in 2 levels. At level 1, whether goodwill is impaired is tested by comparing fair value of its reporting unit to its carrying value and at level 2, how much goodwill is impaired is computed if the carrying value is greater than the fair value. Implied fair value of goodwill is calculated by taking the difference of reporting unit fair value and amount as allocated to the assets and liabilities.
- We have highly experienced and dedicated team which primarily works with clients on purchase price allocation and goodwill impairment complex valuations. We provide highly detailed oriented strategic expertise in carrying such valuations across diversified industries.
Accounting Standard Codification (ASC) 718 (formerly known as Financial Accounting Standard (FAS) 123R)
- As per ASC 718 (formerly known as FAS 123R) guidelines, it regulates the framework for accounting and reporting of share based arrangements with employees. Company must recognize fair value of stock based compensation as awarded to employees for financial reporting perspective. This Fair Value recognition of a stock grant must be accounted by using a total intrinsic value of a share grant or an option-pricing model approach. Total cost of the stock-based compensation is computed over the vesting period or till employee provides services to the company and incorporates all types of share-based employee compensation, including stock options, restricted stock, employee stock purchase plan and appreciation rights etc.
- Our dedicated and experienced team provides comprehensive financial statements analysis to determine the fair value of share-based compensation.
Accounting Standard Codification (ASC) 815 (formerly known as Financial Accounting Standard (FAS) 133)
- ASC 815 (formerly known as FAS 133) mandate covers comprehensive and complex guidance on derivative and hedging transactions. It provides such reporting practices as required to report hedge gains and loss on fair value basis. Per guidelines, accounting for three different types of hedges including cash flow hedge, fair value hedge and foreign currency hedge is based on fair value as reported on balance sheet.
- Performing valuations for such complex derivative instruments demands high end expertise. Our dedicated valuation team assists clients to compute such complex calculations with comprehensive due diligence and analysis.