ComStock Advisors delivers independent estimates of fair value to comply with changing accounting standards.
ComStock Advisors provides independent valuations of the fair values of intangible assets that are required to be recognized as part of business combinations. The new Accounting Standards Codification (ASC) nomenclature has replaced the former Statement of Financial Accounting Standards (SFAS) nomenclature.
ASC 805: Business Combinations (formerly SFAS 141R) 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 that intangible assets that meet the recognition criteria of this standard 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.
ComStock Advisors provides independent valuations to test and measure potential goodwill impairment. ASC 350-20: Intangibles-Goodwill and Other-Goodwill (formerly 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.
ComStock Advisors provides independent valuations to test and measure potential intangible asset impairment. ASC 360: Accounting for the Impairment or Disposal of Long-Lived Assets (formerly 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.
ComStock Advisors provides independent valuations of stock options, restricted stock units, stock appreciation rights, and other equity-based compensation. ASC 718: Compensation-Stock Compensation (formerly SFAS 123R) requires the recognition of equity-based compensation as an expense at the grant date, based on fair value.
ComStock Advisors provides independent valuations of the fair values of certain financial instruments with characteristics of both liabilities and equity. ASC 480: Distinguishing Liabilities from Equity (formerly 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 this standard are required to be measured initially at fair value. For certain financial instruments, subsequent changes in fair value are recognized in earnings.