Valuation For Financial Reporting
Purchase Price Allocation – ASC 805/FASB 141R
The purpose of ASC 805/FAS 141R is to provide investors with better financial information as to the success of past acquisitions. In the process of doing this, the FASB has forced firms to deal with a number of thorny and confusing valuation issues. Axiom Valuation provides expert and cost-effective purchase price allocations for acquisitions for compliance with ASC 805/FAS 141R. Axiom Valuation is an independent valuation expert, and our work has been reviewed and approved by all the major auditing firms.
The purpose of these requirements is also to provide investors with an on-going understanding of the performance of past acquisitions by a company. Axiom Valuation is an independent valuation expert with extensive experience in goodwill, and other long-lived intangible asset impairment testing for single business units, companies with multiple business units and companies with multiple, international business units. We provide clients with timely and cost-effective Step 1 and Step 2 (as needed) analyses. We also advise clients on the potential impacts of evolving ASC 350 requirements, and on differences between GAAP and IFRS goodwill impairment testing approaches.
Nonqualified Deferred Compensation – IRS 409A
Axiom Valuation is one of the leading providers of Section 409A valuation services. Nonqualified common stock options and some other types of nonqualified deferred compensation are subject to the IRS Section 409A requirements. Deferred compensation amounts under these plans are subject to inclusion in a recipient’s gross income unless the plan meets the section’s specified election and distribution requirement.
Entity/Asset Valuation for Tax Purposes
Axiom Valuation provides valuations and consulting services for tax purposes covering a wide range of situations outside of the typical privately held business valuation purposes described in our Business Valuation section. Valuations in this area include intellectual property assets and assets with a value contingent upon a future event.
Alternative Investment Returns Authentication Service (AIRAS)
AIRAS is a statistical detective tool using Modern Portfolio Theory designed to provide a level of confidence that AI reported returns and NAVs are being reported properly. AIRAS has pioneered the use of The Replicating Portfolio (TRP) methodology to value alternative investment interests when the manager does not disclose underlying assets.
AIRAS uses optimization and statistical methods to discover the underlying structure of an AI portfolio. Based on this, AIRAS develops a statistical-based metric, the confidence curve, which indicates the certainty that an AI fund return and NAV are reported properly.