Fair value for financial reporting is a specialized discipline. Standards such as ASC 805, ASC 820, ASC 350, ASC 360, and ASC 718 require valuations that are rigorous, contemporaneous, and ready for auditor review.

Arch Canyon guides clients through fair value measurements for transactions, impairments, and share-based compensation. We prepare analyses that management and auditors can work with — clear assumptions, supportable methods, and documentation that matches the reporting purpose.

What fair value measurement involves

Financial reporting valuations estimate fair value as defined under U.S. GAAP for the relevant standard and unit of account. That may mean valuing a business, an intangible asset, contingent consideration, an embedded feature, or share-based awards. The analysis must be consistent with the reporting entity’s facts, the measurement date, and the hierarchy of inputs under ASC 820 when applicable.

Unlike many tax appraisals, financial reporting work is often iterative with management and auditors. Transparency of models and sensitivity of key inputs is part of a successful process.

When these valuations are needed

Why Arch Canyon

Financial reporting valuations succeed when the work is transparent. We focus on supportable inputs, consistent methodology, and conclusions that stand up to review — delivered by professionals who also work in tax and dispute settings where rigor is non-negotiable.

Our highly credentialed experts provide well reasoned, supportable, and defensible opinions.

Contact: 818.449.6300 | info@archcanyon.com | Agoura Hills, CA

Process / what to expect

1. Reporting objective and timeline. We align with management and, as appropriate, auditors on standards, dates, and deliverables.

2. Fact pattern and data room. Transaction agreements, forecasts, prior valuations, and asset detail are assembled.

3. Modeling and allocation. We develop supportable models — including intangible asset valuations and residual goodwill where applicable.

4. Auditor dialogue. We provide clear workpapers and respond to review questions efficiently.

5. Final deliverables for the audit file. Documentation is organized for management’s reporting package.

Working with management and auditors

Successful fair value engagements are collaborative without sacrificing independence. We expect iterative questions on forecasts, discount rates, useful lives, and market evidence. Our workpapers are organized so audit teams can trace conclusions to sources. When standards interact — for example, a business combination that also raises share-based payment or contingent consideration issues — we keep measurement objectives distinct and documented.

• Business combinations and purchase price allocations
• Fair value measurements for complex instruments or assets
• Goodwill and intangible asset impairment testing
• Long-lived asset impairment assessments
• Embedded derivatives and contingent consideration
• Share-based compensation valuations
• Transactions or restructurings with reporting consequences

What we do

Our financial reporting valuation services include:

• Business combinations and purchase price allocations (ASC 805)
• Fair value measurements (ASC 820)
• Intangible assets
• Goodwill and intangible asset impairment (ASC 350)
• Long-lived asset impairment (ASC 360)
• Embedded derivatives and contingent consideration
• Share-based compensation (ASC 718)