Pluris offers our clients an excellent independent source of valuations for embedded derivatives, convertible preferred, and warrants.
Mike Boswell
TriPoint Capital Advisors, LLC

Purchase Accounting Valuations

Acquisitions are often among the most important decisions for a company’s future growth and development. The decisions involved can be as complex as they are consequential. Likewise, decisions about how to account for the assets purchased can greatly affect the reporting entity’s financial statements, both at the time of the transaction and in years to come. Pluris has significant experience with valuation of the intangible assets purchased in acquisitions, and the accounting expertise required to navigate the fair value accounting principles involved.

With FASB Accounting Standard Codification No. 805 (ASC 805), purchase accounting has been significantly altered. Compared with the old standard (FAS 141R), ASC 805 lowers the threshold of which businesses and business combinations are affected by purchase accounting, expenses transaction and restructuring costs, values contingent consideration (earn-outs) at the time of acquisition, capitalizes in-process research & development projects at the acquisition date, and moves towards using the closing date as the acquisition date, rather than the announcement date.

Rely on Pluris to stay on top of changes in accounting standards in this area, as well as the evolving methods for testing and re-valuing assets under ASC 350. Read our Accounting Alerts for more information.

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