Purchase Accounting- SFAS 141 and SFAS 141R

High Quality
Low Overhead
Valuations with Value

Statement of Financial Accounting Standards (SFAS) 141 requires the use of purchase accounting for mergers and acquisitions. Commencing in 2009, SFAS 141R also requires the use of fair value accounting for these transactions. Because the fair values must be based on market participant assumptions rather than on company specific assumptions, these new rules will dramatically increase the risk and complexity of accounting for an acquisition. These rules may also dramatically increase the volatility of future operating metrics due to increased amortization, depreciation, or future impairment charges.

Corporations rely on Financial Intelligence for a complete solution to these challenges. Because we are experts in both accounting and valuation, we are able to guide our clients through these complex accounting and valuation issues, prepare the necessary valuations correctly the first time, and ensure that the valuations survive potential rigorous scrutiny from auditors and regulatory agencies.

We invest the time and energy it takes to understand the relevant details of our clients' business, market, past performance and future expectations; we maintain rigorous quality control over our analyses, calculations and documentation; we ensure that our written reports comply with relevant accounting standards, SEC reporting requirements, AICPA practice guides and IRS regulations; and we communicate throughout the process with our clients to ensure that there are no surprises.