Recent changes in generally accepted accounting principles require that companies more accurately define and value intangible assets acquired in a business combination. It is no longer acceptable to simply call everything “goodwill” and amortize it over a long period. Goodwill that is recorded is no longer amortized at all, and, in certain circumstances, goodwill carried on the books must be tested periodically to ensure that it continues to hold its value. The value of financial derivatives on the books must be recalculated each year, and new requirements now mandate the valuation and expensing of stock options. We can expect the Financial Accounting Standards Board to continue to demand increasing disclosure based upon current values rather than historic cost.
Furthermore, the accounting firm reporting on the financial statements is not permitted to perform valuation work, the results of which would be an element of the client’s financial statements. CapVal, LLC, as an independent party, can assist CPA firms with the required valuations, enabling them to maintain their independence and to render opinions and other reports on their clients’ statements in while complying with the new rules.
While our members are CPA’s themselves, we do not practice as CPAs. We therefore offer our clients absolute independence. At the same time, we pose no competitive threat to the audit and tax practices of our CPA-referral sources and CPA’s working with us on various assignments for their clients.
CapVal, LLC