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Financial Reporting (ASC Topics 805/350/360/820)

Delphi offers deep knowledge and experience in valuations for financial reporting purposes. Our professionals offer a mix of finance and accounting expertise and maintain active involvement in numerous standard setting organizations. We keep up with the latest developments in financial reporting methods, requirements under US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS), and have extensive experience performing complex analyses and tackling unusual situations.

We work closely with a company’s internal finance and accounting professionals as well as external accountants and auditors to understand the significance and impact of each situation and to develop supportable and timely analysis that withstands the rigorous review process.

Our services include valuations for:

  • Purchase Price Allocation (ASC 805) (IFRS 3)
  • Impairment Testing for Goodwill (ASC 350)
  • Impairment Testing for Long-lived Intangibles (ASC 360) (IAS 36)
  • Stock-based Compensation (ASC 718)
  • Fair Value Accounting for Venture Capital and Private Equity Funds (ASC 820) (IAS 39)

For ASC Topics 805, 350 and 360, the term Fair Value is defined in ASC 820 as:

“The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

This is an exit price (sell-side) concept, which means the price a company would receive if they were to sell the asset in the marketplace or paid if they were to transfer the liability. The price considers the highest and best use of an asset, which means the use by a market participant that would maximize value. The transaction is assumed to be orderly, with market exposure for enough time to allow for usual marketing activities and is not a forced liquidation or distressed sale. Transaction costs are not included in the fair value of an asset or liability.