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Allocation
An allocation of purchase price is needed in connection with any acquisition of a company or its assets such as purchases that involve stock, cash, cash and debt and many other combinations. Applicable regulations include:
Impairment studies
Impairment studies are performed to determine if the value of certain assets is less than the value of these assets on the company's books. Studies include:
- Goodwill impairment (SFAS 142)
- Impairment of long-lived assets (SFAS 121/144)
- In-process research and development (SFAS 2)
- Fair value of warrants (SFAS 123)
Property records
AccuVal assists companies in identifying assets and establishing the details for the firm's property records. Accurate property records help companies:
- Maximize return on investment
- Minimize insurance premiums
- Keep tax records accurate
- Provide proof of loss for insurance claims
Fresh start accounting
Companies emerging from Chapter 11 bankruptcy require assistance in establishing financial books and records for depreciation purposes. Secured lenders that provide Debtor In Possession (DIP) financing broadly recognize and accept AccuVal's work, making the firm a leading choice for these services. Customers realize cost savings from having a single source manage their fresh start financial reporting needs.
Liquidity Tests
Liquidity tests consider the value of the business combined with the forced liquidation value of its assets to determine if the enterprise is liquid.
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