Financial reporting is becoming more complex and challenging. Financial accounting is evolving from historic cost basis to fair value measurement. The FASB and the SEC have promulgated many new standards regarding fair value measurements, with more to become effective. Companies have experienced expanded scrutiny from their auditors and the SEC in response to Sarbanes-Oxley guidelines. Increasing use of stock options and other forms of equity compensation have fueled new rules from the IRS on granting such compensation and from the FASB on reporting the effect of such grants.
With mounting complexity and ever changing standards, issuers need fair value measurements that are reliable, auditable and in accordance with generally accepted accounting principles. Financial executives are seeking guidance from valuation professionals who understand the new financial reporting environment, are independent, and can successfully pass the heightened review of auditors, investors and regulatory bodies. HFBE meets these needs.
We perform valuations for financial reporting purposes. Our valuation services include fair value and fair market value opinions used for financial and regulatory reporting. Examples of valuations we have performed include:
- SFAS 141 – Purchase price allocations and valuation of identifiable intangible assets
- SFAS 142 – Goodwill impairment testing
- SFAS 144 – Impairment testing of long-lived assets and long-lived assets to be disposed
- SFAS 123(R) – Fair market value of stock-based compensation
- IRC §409A – Valuations for deferred compensation plans and to set stock option exercise prices
Our clients rely on us to accurately determine fair value and to use well supported methods. They also rely on us to estimate the amortization effect on proposed transactions to assess potential accretion and dilution effects. HFBE works closely with its clients to identify the asset or interest being valued, to select the appropriate valuation method, and to develop assumptions that are reasonable and consistent with available market information.
Our professionals have the education, experience, skills and certifications described in the auditing standards to be qualified as a valuation specialist. They are knowledgeable of the accounting and valuation standards governing valuations performed for financial reporting. We have good relations with the major accounting firms and regulatory agencies. Our reports have been reviewed and accepted by auditors and valuation specialists with the regional, national and international accounting firms. Our clients have relied on our valuations for preparing financial statements filed with the SEC and for stock option grants subject to the Internal Revenue Code.
