ASC 815
The increasing use of complex securities and derivatives to mitigate risk led to the issuance of Accounting Standards Codification 815 (formerly SFAS 133 & SFAS 155) to ensure the quantity and variety of derivatives become transparent in financial reporting.
What is ASC 815? Accounting Standards Codification 815 requires that an entity recognizes all derivatives (including embedded derivatives) at fair value as either assets or liabilities on the balance sheet. The change in fair value from year to year is calculated with the accounting treatment of gains and losses dependent on the intended use of the derivative contracts.
Our Approach: The mechanics of complex securities and other derivatives are often complicated to grasp. Our valuation experts have experience in valuing a wide array of securities and are able to drill down to the core value drivers. Moreover, we work with management to determine value and in some instances assist management in understanding the complex security's impact on the overall business. Our final deliverable is clearly written, well thought out, and easily understood.