FASB ASC 820 Fair Value Measurements and Disclosures was issued to clarify the term “fair value”, a concept that is used throughout the FASB literature. FASB ASC 820 establishes a framework for measuring and disclosing assets and investment values and has significantly changed the financial reporting landscape of entities holding illiquid investments. Also, the FASB and SEC have issued various additional interpretations and clarifications of the fair value concept. These developments have made it more critical than ever to obtain a third-party firm to provide a fair value of illiquid investments.
Murray Devine values all classes of illiquid securities (both with and without imbedded options) in compliance with FASB ASC 820 including common stock, preferred stock, LLC and partnership interests, senior and subordinate debt, distressed debt, warrants and options. Murray Devine also provides FASB ASC 820 valuations at the company level for private equity and hedge fund’s investments. Murray Devine provides such valuations on a portfolio level for private equity funds, hedge funds, CDOs, BDCs and fund of funds’ direct investments and has been a leader in helping companies and funds comply with the evolving fair value requirements of FASB ASC 820. (Also see Portfolio Valuations.)