ASC 805, issued by the Financial Accounting Standards Board (FASB), provides comprehensive guidelines for accounting in business combinations. This standard mandates the use of the acquisition method, which requires Purchase Price Allocation (PPA) process. The PPA involves determining the fair value of all identifiable tangible and intangible assets and liabilities acquired in a transaction. Tangible assets include physical items such as land, buildings, and equipment, while intangible assets encompass non-physical items like patents, trademarks, and customer relationships.
Our ASC 805 valuation services are designed to ensure full compliance with these standards, providing transparent and accurate valuations that reflect the true value of your acquisitions. This process is crucial for accurate financial reporting, as it impacts both the balance sheet and income statement.
Additionally, ASC 805 requires the recognition of goodwill, which is the excess of the purchase price over the fair value of the identifiable net assets acquired. This standard also addresses contingent consideration, which involves additional payments to the seller based on future events or performance targets.
By utilizing our professional valuation services, you can ensure that your business combinations are reported accurately and transparently, enhancing investor confidence and supporting informed decision-making. Our expertise in ASC 805 valuations helps you navigate the complexities of these transactions, providing reliable and compliant financial reporting.
ASC 805 is a set of accounting standards issued by the FASB that governs the financial reporting of business combinations.
It ensures transparency and accuracy in the reporting of mergers and acquisitions, helping investors understand the true value of these transactions.
PPA is the process of assigning fair values to the acquired company's identifiable assets and liabilities.
Tangible assets include physical items like land, buildings, and equipment.
Intangible assets include non-physical items such as patents, trademarks, and customer relationships.
Goodwill is the excess of the purchase price over the fair value of the identifiable net assets acquired.
The acquisition method involves identifying the acquirer, determining the acquisition date, and recognizing and measuring the identifiable assets acquired, liabilities assumed, and any non-controlling interest in the acquiree.
It impacts the balance sheet by accurately reflecting the fair value of acquired assets and liabilities, and the income statement through amortization and impairment of intangible assets.
Contingent consideration is an additional payment to the seller that depends on future events or performance targets.
Professional services ensure compliance with ASC 805, providing accurate and reliable valuations that support financial reporting and investor confidence.
To initiate the process, simply contact us through our website, email or call our office. We will guide you through the necessary steps and gather the required information for your valuation.
We believe in building everlasting relationships based on strong pillars of trust, faith and professionalism.
© 2024 All Rights Reserved.