MPI’s Financial Reporting Valuations
Both publicly traded and privately held companies face many challenges in ensuring compliance with ever-changing financial reporting standards. MPI has decades of experience in enabling financial executives to comport with today’s complex financial reporting environment. MPI is a valuable resource that can be consulted to determine exactly what is required for any type of compliance related issue that may arise.
Financial Reporting Valuation Service Offerings
Our financial reporting valuation services include, among others:
- Equity-based incentive compensation plans (ASC 718):If your company has a key employee incentive equity program in some form, MPI has a deep understanding of the different types of programs that exist and can perform the appropriate type of valuation for your specific plan.
- Financial assets and liabilities (ASC 480/820): MPI can help navigate liability and asset classification as applying ASC 480 can be complex.
- Fresh start accounting (ASC 820/852): If your company is emerging from Chapter 11 bankruptcy and qualifies for Fresh Start Accounting, MPI can determine the fair value.
- Impairment testing services (ASC 350/360): MPI can perform fully documented impairment valuations to assist with determining a fair value comparison to carrying value.
- Portfolio company valuation (ASC 820): ASC 820, a component of GAAP sets the standards for measuring and disclosing the fair value and is relevant for portfolio companies held by private equity and venture capital funds. MPI has deep expertise in performing valuations of portfolio companies for clients.
- Purchase price allocation valuation (ASC 805): MPI can be your source for a purchase price allocation study if your company is engaged in a business combination with a need to determine fair value of assets and liabilities acquired in a business combination under ASC 805.
Why Choose MPI for Financial Reporting Valuation
The fair value standards and applications are constantly evolving. Valuations are increasingly being scrutinized by ownership, boards, auditors, and regulatory bodies. Independent fair valuations are often required in order to navigate through this increasing scrutiny and ultimately to obtain audited financial statements. MPI offers high quality, credible valuations that will meet the rigors of the stakeholder group. Our team is highly communicative and easy to work with making the process seamless for both you and your advisor team.
MPI professionals have the experience and knowledge to keep your business compliant with regulators, corporate boards, auditors, and shareholders. MPI has offices in Boston, Chicago, Dallas, New Jersey, New York, Philadelphia, San Francisco, Seattle, and Westport. Please contact us to discuss your financial reporting valuation needs.
Frequently Asked Questions for Financial Reporting Valuations
How can a company prepare for a financial reporting valuation?
A company can prepare by identifying the financial reporting purpose of the engagement and organizing the relevant financial, ownership, transaction, forecast, and asset information. The exact documentation needed will depend on the valuation type and the applicable accounting guidance.
What types of financial reporting valuations does MPI provide?
MPI provides financial reporting valuation services for equity-based incentive compensation plans under ASC 718; financial assets and liabilities under ASC 480 and ASC 820; fresh-start accounting under ASC 820 and ASC 852; impairment testing under ASC 350 and ASC 360; portfolio company valuations under ASC 820; and purchase price allocations under ASC 805.
When might a company need a financial reporting valuation?
Companies may need a financial reporting valuation when issuing equity-based compensation, completing a business acquisition, assessing goodwill or long-lived assets for impairment, measuring financial assets or liabilities at fair value, reporting portfolio company values, or emerging from Chapter 11 bankruptcy.
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