Financial Reporting and Tax Valuation Services

Financial Reporting Valuation Services

The financial reporting environment is evolving rapidly. And Deloitte is committed to helping our clients stay at the leading edge of these developments to weather both the implications and the opportunities. With auditors and regulatory institutions focusing on your accounting, it’s essential for companies to develop fair value estimates using objective data points, particularly market-based ones.

Understanding the dimensions of a proposed transaction early in the process and supporting the valuation and accounting treatments applied to it can help organizations effectively comply with current fair value standards. And going forward, we can help ongoing asset impairment testing.

Our professionals can assist in estimating the fair value of underlying assets in relation to purchasing price and help management set an appropriate basis for financial or other reporting purposes.

Our Financial Reporting Valuation Services include:

• Business combinations
• Impairment of assets
• Financial instruments
• Portfolio valuations
  

Download the overview to learn more about our Financial Reporting and Tax Valuation Services.

Back to top

Financial reporting case studies

Financial services institution
Assisted management of a regional bank with an ASC 805 analysis related to an FDIC-assisted bank transaction. We estimated the fair value of the acquired loan portfolio (which totaled approximately $2.3 billion), loss share indemnification asset, and unfunded commitments. As part of the loan analysis, we developed credit estimates for substandard and non-accruing commercial real estate and construction loans. We also estimated the fair value of select REO properties with market values greater than $2 million.

Technology company
Engaged by a multinational computer technology company to complete a valuation analysis in connection with its acquisition of a large computer storage and virtualization company. Deloitte’s intangible asset, personal property, and real property valuation teams worked together to perform the appraisal, which included complex tech-related assets such as developed technology, in-process R&D, and patents. The real and property assets were located in facilities in 76 countries.

Back to top

Tax Valuation Services

Our valuation professionals coordinate with our tax colleagues from Deloitte Tax LLP and other professionals worldwide through the Deloitte Touche Tohmatsu Limited (DTTL) network of member firms. We provide multidisciplinary and cross-border services to meet the diverse circumstances of our clients.

Our clients benefit from the range of tax-related valuation services we offer, including purchase price allocation, valuing legal entities for tax structuring or restructuring purposes, and assisting clients with other tax-related valuation requirements in complying with domestic and global taxing authorities.

Back to top

Tax valuation case studies

Telecommunications company
Engaged by a US-based incumbent local exchange carrier (ILEC) to value their network and non-network assets for state sales and use tax and federal income tax planning purposes. The company had multiple wholly owned subsidiaries that own assets leased to other entities within the company. The company was considering a transaction whereby the leasing entities planned to sell the assets to the various operating entities.

Biotechnology company
A leading global biotechnology company sought help in assessing numerous Fee-For-Service (FFS) arrangements. Deloitte delivered required analysis related to the fair market value of FSS agreements provided by various vendors to the client. Deloitte identified a list of specific strategic benefits derived by the client due to FSS agreements and quantified the ones the client deemed material. Deloitte also developed a tool which enabled the client to estimate FMV of future contracts for similar services.

Back to top