Fair Value Measurements Built For Funds, Portfolios, And Financial Reporting..
Fair Value Needs Evidence, Not Assumptions Alone.
Fair value measurement becomes challenging when assets are illiquid, market inputs are limited, or investments do not have easily observable prices. For funds, investment entities, and companies holding complex financial assets, the valuation process must be both technically sound and well documented. ASC 820 requires more than arriving at a number. It requires careful consideration of market participant assumptions, fair value hierarchy, valuation techniques, input reliability, and the level of observability behind the conclusion. Template-based valuations can fall short when dealing with private company investments, PE/VC portfolios, contingent consideration, impairment-related matters, or Level 3 assets where judgment plays a significant role.
BSMART provides customized ASC 820 fair value measurement support built around the asset, reporting date, available market data, and financial reporting requirement. Our work helps funds, companies, and finance teams improve transparency, strengthen documentation, and reduce the risk of audit challenges or valuation disputes.
ASC 820 Fair Value Measurements
Under ASC 820, fair value measurements are required for certain assets and liabilities reported at fair value in financial statements. This is especially relevant for funds, investment entities, companies with illiquid assets, and businesses holding complex financial instruments.
BSMART provides fair value measurement support designed to improve reporting accuracy, documentation quality, and audit readiness.
- Services Include
- Independent valuation of private investments, PE/VC portfolios, and institutional assets
- Valuation of illiquid and Level 3 assets where observable inputs are limited
- Market data analysis and documented fair value hierarchy considerations
- Valuation support for contingent consideration, impairment testing, and complex financial assets
- Portfolio and fund fair value reporting for quarterly or annual financial statements
- Clear reporting of assumptions, methods, and valuation conclusions
- Why It Matters
A Clear Process From Investment Data To Defensible Fair Value Measurement
Every ASC 820 engagement begins with understanding the asset or investment being measured, the reporting date, the purpose of the valuation, and the level of documentation expected by auditors, investors, or internal stakeholders. We review company financials, investment documents, transaction history, market data, operating performance, comparable inputs, and any available observable evidence. Based on the nature of the asset, we select valuation techniques that align with fair value measurement principles and the availability of reliable inputs.
Each report is prepared with clear assumptions, fair value hierarchy considerations, supporting analysis, and valuation conclusions that can withstand external review.
Understand The Measurement Requirement
We identify the asset or liability being measured, reporting date, accounting purpose, fair value requirement, and stakeholder expectations.
Review Investment And Market Data
We analyze investment documents, financial statements, portfolio updates, transaction history, market comparables, operating metrics, and relevant external inputs.
Assess Fair Value Hierarchy
We evaluate the availability of observable inputs and determine the relevant fair value hierarchy considerations, especially for illiquid and Level 3 assets.
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Select The Right Valuation Technique
We apply appropriate income, market, asset-based, or scenario-based methods depending on the nature of the asset and available information.
Deliver The Fair Value Report
You receive a documented valuation report with methodology, assumptions, market inputs, hierarchy considerations, and fair value conclusions.
Support Audit And Investor Review
We assist with valuation questions, auditor requests, investment committee discussions, and supporting documentation for financial reporting.
Bring More Clarity To Your Fair Value Reporting.
Whether you need quarterly portfolio valuation support, Level 3 asset measurement, private investment valuation, or fair value documentation for financial statements, BSMART helps you report with greater confidence.