Fair Value Reporting

Don’t risk auditor issues and possible delays issuing your financial statements.

As part of financial disclosure, companies must determine the fair value of assets and liabilities at the date of acquisition and subsequently test for impairment after that. Additionally, certain entities must also mark-to-market their investments on a quarterly basis.

There are detailed rules surrounding fair value accounting (Financial Accounting Standards Board Topic 820, formerly FAS 157), but it can be a complex task to assess and apply them accurately. While problems can arise when determining the fair value of tangible assets, applying the rules to intangible assets greatly increases the complexity.

The application of accounting pronouncements for the valuation of intangible assets can be quite ambiguous. Also, assessing the fair value of investments quarterly on a marked-to-market basis can also be challenging and time consuming. In all cases, a thorough understanding of accounting valuation techniques and experience is crucial.

Why take a risk?

Whether you’re a financial institution, private equity group, hedge fund, not-for-profit or other reporting entity, you need sophisticated, experienced valuation assistance. An McGladrey valuation professional can quickly resolve ambiguities if your auditor questions a fair value assumption or your investment valuation methodology, helping you avoid the embarrassment of potential reporting delays or misstatements.

When you need experienced, responsive fair value reporting help, just call. You’ll have access to the right specialist for your industry and asset class, across the United States and internationally.

Why take a risk? Contact McGladrey.