ASC 805 Valuation Services

An ASC 805 valuation involves identifying, measuring, and allocating fair values across multiple asset categories to ensure a complete and compliant purchase price allocation. At AcumenSphere, our process typically includes:

• Identification and Recognition: Determining the acquiring entity, acquisition date, and scope of the business combination, followed by recognition of identifiable assets and liabilities at their acquisition-date fair values.
• Tangible Asset Valuation: Covers real estate, plant, machinery, and equipment. Fair values are determined using market or cost approaches, ensuring that physical assets are represented accurately in financial statements. Working capital balances are reviewed separately to determine net adjustments. 
• Intangible Asset Valuation: Focuses on non-physical assets that drive future earnings, such as brands, customer relationships, technology, and licences. These are assessed using income-based, market-based, or cost-based methodologies depending on their nature and economic contribution.
• Liabilities and Contingent Considerations: Involves evaluating assumed debts, lease obligations, performance-based payments, and other contingent liabilities to ensure a complete understanding of post-acquisition financial commitments.
• Goodwill Calculation and Impairment Testing: Represents the residual value after allocating the purchase price to identifiable assets and liabilities. Subsequently, under ASC 350, this goodwill is not amortized but is tested for impairment at least annually to justify its carrying value.
• Presentation and Disclosure: Ensuring consistent classification and presentation within financial statements.
• Reporting and Documentation: Providing detailed valuation reports, assumptions, and reconciliations to support audit review and regulatory disclosure requirements.

Our structured approach to purchase price allocation under ASC 805 provides transparency, audit-ready documentation, and full compliance with US GAAP and financial reporting standards.

How AcumenSphere Conducts ASC 805 Valuations?

AcumenSphere follows a structured, transparent, and defensible approach to deliver reliable purchase price allocation ASC 805 reports:

1. Data Collection and Financial Review: We gather transaction documents, financial statements, and acquisition agreements to understand the nature of the business combination.
2. Identification of Assets and Liabilities: Our team identifies tangible and intangible assets, liabilities, and contingent considerations in accordance with ASC 805 guidelines.
3. Valuation Modelling: Using the income, market, and cost approaches, we develop comprehensive models for each asset class, backed by relevant financial data and market comparables.
4. Fair Value Measurement: We perform fair value estimation consistent with ASC 820 standards, ensuring compliance with both US GAAP and IFRS.
5. Validation and Reporting: Our reports undergo multi-level reviews for accuracy, defensibility, and audit compliance before submission.

Each valuation engagement is designed to meet audit scrutiny, ensuring seamless collaboration with external auditors and internal finance teams.

Does Your Company Need an ASC 805 Valuation?

An ASC 805 valuation becomes essential in the following situations:

• Business Combinations or Mergers and Acquisitions: Every acquisition that qualifies as a “business” under ASC 805 requires a PPA.
• Cross-Border or IFRS Transactions: When companies operate across jurisdictions, they require dual compliance with ASC 805 and IFRS 3.
• Private Equity and Investment Transactions: For portfolio companies involved in acquisitions, mergers, or recapitalizations.
• Goodwill or Impairment Testing: When subsequent impairment assessments under ASC 350 are needed.
• Regulatory and Audit Requirements: To support financial disclosures and satisfy auditor expectations.

Timely valuation ensures compliance, avoids audit delays, and supports informed financial decision-making.

Common Risks in ASC 805 Valuations

Inaccurate or inconsistent purchase price allocation can expose a company to serious financial and reputational consequences. Key risks include:

• Inaccurate Financial Statements: Errors in fair value measurement can lead to restatements, audit delays, and regulatory scrutiny.
• Loss of Shareholder Confidence: Misreported asset values or goodwill impairments can reduce investor trust and affect market perception.
• Reputational and Legal Exposure: Non-compliance with ASC 805, ASC 820, or ASC 350 may result in audit qualifications, penalties, or litigation.
• Lack of Consistency Across Reporting Periods: Inconsistent assumptions or methodologies can undermine comparability and trigger auditor concerns.
• Weakened Decision-Making: Faulty valuation inputs distort management’s view of asset performance, impacting investment and integration decisions.

Partnering with a qualified ASC 805 valuation specialist, like AcumenSphere, ensures consistency, transparency, and audit-defensible reporting, safeguarding both compliance and stakeholder confidence.

How AcumenSphere Strengthens Your ASC 805 Valuation Process

AcumenSphere adds structure, clarity, and defensibility to ASC 805 valuations by combining technical accounting knowledge with industry-specific insights. Our approach focuses on aligning valuation outcomes with US GAAP requirements, anticipating audit expectations, and supporting smooth post-acquisition reporting. By engaging us early in the transaction cycle, acquirers reduce surprises, strengthen due diligence, and ensure timely completion of Purchase Price Allocations. We leverage advanced modelling tools, global databases, and multidisciplinary expertise to deliver valuations that withstand regulatory and auditor review.

• Alignment with US GAAP and financial reporting needs
  
  
• Support for complex, multi-asset business combinations
  
  
• Independent appraisers with recognised global credentials
  
  
• Access to trusted financial and market data sources
  
  
• Clear deliverables with a transparent pricing structure
  
  
• Fast turnaround aligned with transaction timelines

Our valuation reports are designed to stand up to auditor and regulatory review, making us a trusted partner for corporates, private equity firms, and accounting professionals nationwide.

Explore Other Valuation and Financial Reporting Services

Beyond ASC 805 valuations, AcumenSphere offers a comprehensive suite of valuation and advisory solutions to meet every financial reporting requirement:

• ASC 820 – Fair Value Measurement: Provides independent fair value assessments for financial reporting, ensuring accuracy and compliance with US GAAP standards.
• ASC 409A – Valuation for Equity Compensation: Determines the fair market value of private company stock for option grants and employee compensation planning.
• ASC 350 – Goodwill and Intangible Asset Valuations: Delivers precise goodwill and intangible asset assessments with ongoing impairment testing to maintain reporting integrity.
• Commercial Valuations and Business Valuation Services in the USA: Offers comprehensive business and commercial property valuations for financial, regulatory, and strategic decision-making.

Each service is delivered with the same attention to accuracy, compliance, and timeliness that defines our firm.

Get Expert ASC 805 Valuation Services in the USA

Ensure accuracy, compliance, and confidence in your purchase price allocation with AcumenSphere’s expert team. Whether you’re preparing for an audit, merger, or investor reporting, our professionals deliver clarity at every step. Accurate, defensible ASC 805 valuations that stand up to audit scrutiny and enhance financial transparency. Partner with one of the best ASC 805 valuation firms in the USA to get started. Schedule a consultation with our valuation experts today.