Audit-Ready ASC 820 Valuation Reports
409.AI helps funds and companies prepare expert-reviewed fair value measurements for Level 3 investments, with documentation built for US GAAP reporting and auditor review.
ASC 820 is the US GAAP standard for fair value measurement, defining fair value as the exit price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
At a glance
| Report | ASC 820 valuation report |
|---|---|
| Summary | Expert-reviewed ASC 820 valuation reports with fair value analysis and Level 3 documentation support for US GAAP reporting. |
| Price | From $4,999 |
| Jurisdiction | United States |
What is included
- Investment and company intake context
- Fair value analysis with documented valuation techniques and inputs
- Calibration to recent financing rounds where available
- Support for Level 3 disclosure workflows
- Expert-reviewed final valuation report
Frequently asked questions
What is ASC 820?
ASC 820 is the US GAAP standard for fair value measurement. It defines fair value as the exit price, meaning the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
Who needs ASC 820 valuations?
Venture capital, private equity, and other investment funds that report portfolio holdings at fair value, along with companies that hold investments or other positions measured at fair value in US GAAP financial statements.
What is the fair value hierarchy?
ASC 820 classifies inputs into three levels: Level 1 for quoted prices in active markets, Level 2 for other observable inputs, and Level 3 for unobservable inputs. Private company positions are typically Level 3, which carries the most extensive disclosure requirements.
How are private company investments valued?
Common approaches include calibration to recent arm’s-length financing rounds, market comparables, and income approaches, with value allocated across share classes using techniques such as the option pricing method or scenario-based methods depending on the company’s stage.
How often are portfolio valuations needed?
Many funds mark positions quarterly for reporting to limited partners, with formal valuations prepared at least annually to support the year-end audit.
How does ASC 820 differ from a 409A valuation?
A 409A valuation establishes the fair market value of common stock for tax purposes, while ASC 820 measures a specific holding at an exit price for financial reporting. The two serve different audiences and can reasonably reach different values.
What do auditors focus on?
Auditors typically test the choice of valuation technique, the freshness of any calibration to prior rounds, the significant unobservable inputs, the hierarchy classification, and the documentation supporting each of them.
Is this tax, legal, or accounting advice?
No. The valuation report organizes company-provided information into supporting documentation and should be reviewed with your auditors and qualified advisors.