Please see the complete descriptions of our Financial Reporting services below:
Financial Reporting
Purchase Price Allocations
ComStock Advisors provides independent valuations of the fair values of intangible assets that are required to be recognized as part of business combinations.
SFAS 141 [and SFAS 141(R), effective for the first annual reporting period beginning after December 15, 2008] requires that the cost of a business combination be allocated to the tangible and intangible assets acquired and the liabilities assumed. The purchase price allocation process requires, among other things, that intangible assets that meet the recognition criteria of SFAS 141 be valued under the fair value standard. Fair value is 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.
Goodwill Impairment Tests
ComStock Advisors provides independent valuations to test and measure potential goodwill impairment. SFAS 142 requires that the goodwill of a reporting unit be tested annually, and in certain circumstances, between annual tests. The first step of the goodwill impairment test compares the fair value of the reporting unit with its carrying value. The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. If the carrying value of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is required. This test compares the fair value of the reporting unit goodwill with its carrying value.
Impairment Tests for Other Intangible Assets
ComStock Advisors provides independent valuations to test and measure potential intangible asset impairment. SFAS 144 requires that certain intangible assets that are subject to amortization be tested for impairment. An impairment loss shall be recognized if the carrying value of an intangible asset is not recoverable and exceeds its fair value.
Equity-Based Compensation Services
ComStock Advisors provides independent valuations of stock options, restricted stock units, stock appreciation rights, and other equity-based compensation. SFAS 123(R) requires the recognition of equity-based compensation as an expense at the grant date, based on fair value.
Financial Instruments with Characteristics of both Liabilities and Equity
ComStock Advisors provides independent valuations of the fair values of certain financial instruments with characteristics of both liabilities and equity. SFAS 150 establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. Certain financial instruments that are covered by SFAS 150 are required to be measured initially at fair value. For certain financial instruments, subsequent changes in fair value are recognized in earnings.