Financial Reporting Valuation
A wide range of services satisfying fair valuation requirements, as well as reviews by auditors and other regulatory bodies.
As the global economic scenario evolves faster than ever before, the fair market values of assets become increasingly volatile. With global accounting and reported standards moving increasingly towards “marked-to-market” method, illiquid assets of any business, especially intangible assets, need to be periodically revalued and restated in the financial statements.
Testing for goodwill impairment is an important part of this ongoing process. Goodwill impairment review, usually an annual (or triggered by special events) exercise, requires the use of different valuation methodologies for different business units to ascertain the total impairment of a company’s reported goodwill, if any. We at Knowcraft understand the detailed approach required for it and are well positioned to provide you the last mile support in executing the projects.
As an organization grows in size and scale, it invariably builds substantial reserves in the form of liquid assets, strategic investments, financial stakes, derivatives for hedging, real estate and exchange traded funds (ETF). This entire portfolio is required to be reported at their respective fair market values in the company’s financial statements. If your clients are holding multiple financial assets with different levels of risk, complexity, marketability and liquidity, they will find it extremely difficult to report all of these assets at their fair value on a regular basis without your support.
To assist you in valuing your client portfolio, our team of valuation experts brings to the table several years of rich experience in valuing different kinds of financial assets, such as equity interest in a private company, notes and other leveraged investments, illiquid debt, convertible securities, royalty interest, real estate and other complex securities.
STOCK APPRECIATION RIGHTS
Another offshoot of your business and ESOP valuation services could be the accurate measurement of any SARs applicable for your client’s employees. SARs, which are a type of employee incentives, are direct derivatives of a company’s stock value. However, unlike actual options, which have a specific vesting schedule, SARs may not have a specific payout date, and may be paid at the discretion of the management. They are paid in either cash or stock.
Once a company’s current fair market value, the option exercise price, and the vesting schedule are known, estimation of SARs becomes a fairly straightforward exercise for our seasoned team of experts.