As your Trusted Advisor, Front Street Valuations helps you simplify your Financial Reporting processes. Making your audits more efficient saving you time and money!!!
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Front Street can help with all of your valuations for financial reporting requirements
Purchase Price Allocations (IFRS 3/ ASPE 1582 /ASC 805)
A Purchase Price Allocation (PPA) is the process of assigning a purchase price to the acquired assets and liabilities of a target company during a merger or acquisition. This allocation is needed at the time of acquisition to ensure compliance with accounting standards (such as IFRS 3 or ASC 805). PPA is essential for determining the fair value of tangible and intangible assets, recognizing goodwill, and providing transparency in financial reporting. It helps in tax planning, informs investors about the value of acquired assets, and ensures accurate depreciation and amortization in future financial statements.
Goodwill Impairment Testing (IAS 36/ ASPE 3064 /ASC 350)
Goodwill impairment testing is the process of evaluating the fair value of goodwill on a company's balance sheet to determine if it has declined below its carrying value. This test is needed annually or when triggering events (e.g., market downturns, loss of key customers) indicate potential impairment. Goodwill impairment testing ensures accurate financial reporting by recognizing and writing down impaired goodwill, thereby reflecting the true value of the company's assets. It is essential for compliance with accounting standards (like ASC 350 or IAS 36) and provides stakeholders with a clear view of the company's financial health.
Impairment Testing of Long Lived Assets (IAS 36/ ASPE 3063 /ASC 350)
Impairment testing of long-lived assets evaluates whether the carrying value of assets exceeds their recoverable amount. This test is required when there are indications that an asset’s value may have declined, such as adverse changes in market conditions, technological obsolescence, or sustained losses. Conducting impairment tests ensures compliance with accounting standards (e.g., ASC 360 or IAS 36), prevents overstating asset values, and provides an accurate financial position of the company. If impairment is identified, the asset's value is written down to its fair value, ensuring transparent and reliable financial reporting.
Portfolio Company Valuations (IFRS 13/ ASC 820)
Portfolio company valuations determine the worth of companies held within an investment portfolio. These valuations are essential for investors, such as venture capital and private equity firms, to assess the performance and potential return on their investments. Accurate valuations guide decision-making on buying, selling, or holding investments, ensure compliance with financial reporting standards, and provide insights into the portfolio's overall health. They also support fundraising efforts and negotiations in mergers and acquisitions, contributing to informed strategic planning and investment management.
Intangible Asset Valuations (IAS 38/ ASPE 3064/ ASC 350)
Intangible asset valuations involve assessing the value of non-physical assets like patents, trademarks, brand reputation, and intellectual property. These valuations are crucial for various business purposes, including mergers and acquisitions, financial reporting, tax compliance, and strategic planning. Accurate valuations help ensure fair pricing in transactions, compliance with accounting standards, and informed decision-making, ultimately contributing to a company's financial health and growth.
How Front Street Valuations can help you streamline your financial reporting processes
Front Street's team includes experienced, credentialed professionals that are experts in fair value assessments for both businesses and intangible assets. Complying with financial reporting requirements often involves significant internal resources which can distract from strategic pursuits. Front Street’s collaborative and streamlined valuation process includes scoping each engagement, identifying complexities early on in the process, and working with external accountants to build consensus on approaches and methodologies at the beginning of an engagement, resulting in quicker turnaround times, reduced burden on management teams, and expedited audit / financial reviews.