SOP 90-7 was issued in 1990 to provide guidance on financial reporting by entities that file petitions with the Bankruptcy Court and expect to reorganize as a going concern. Under SOP 90-7, entities meeting certain criteria are required to adopt fresh-start reporting. Under fresh-start reporting the reorganization value of an entity should be allocated to the entity’s assets in conformity with the procedures specified by FASB ASC 805 Business Combinations.