Press Room: Article
April 24, 2024
Valuation Insights for Market Capitalization Reconciliations
Many companies are currently in the process of completing their annual goodwill impairment tests under the requirements of Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 350 Intangibles – Goodwill and Other. In order to comply with Securities and Exchange Commission (SEC) requirements, public registrants are expected to perform an analysis that reconciles the fair value of the reporting unit tested (or reporting units) to the public market capitalization of the company. During the reconciliation process, companies may face several roadblocks that require careful consideration.