Complex Financial Instruments

Comply with financial reporting and tax regulations at every stage with sound accounting and valuation analysis.

From start-up to maturity, CLA helps companies understand the value of their complex financial instruments and securities to comply with reporting and regulatory requirements.

What’s on your mind?

  • Understanding the accounting for initial measurement
  • Applying the fair value framework under ASC 820
  • Complying with equity-based compensation requirements
    • Reducing the risk of tax penalties under IRC 409A
    • Valuation and accounting under ASC 718
  • Identifying and valuing complex financial instruments and arrangements, including contingent considerations, derivatives, and hedging activities
  • Valuing private equity and venture capital portfolio company investments

Experience our client-focused approach

Understanding what should be carried at fair value and applying the appropriate valuation methodology for complex financial instruments can be challenging. CLA can provide you with this specialized knowledge and skill and offer objective financial instrument valuations — on your timeline — that aligns with the purpose of the valuation to meet your and your auditor’s expectations. We focus on understanding the instrument, selecting the appropriate method, assumptions, and inputs, and applying them in a critical fashion. We offer efficiency for timely compliance with regulatory and reporting requirements.

CLA’s national team of highly trained professionals participate in the development of valuation recommended practices and professional guidance with leading valuation professional organizations. Working with us provides you access to the industry guidance and thought leadership arising from the latest developments in valuation methods. In addition, CLA’s Consulting and Accounting Solutions Team (CAST) can help guide your accounting identification, documentation, and disclosures.

Valuation services for complex financial instruments

  • Equity compensation awards (including compliance with ASC 718 and IRC 409A)
  • Employee stock options
  • Restricted stock awards
  • Common stock in complex capital structures
  • Equity awards with market-based vesting conditions
  • Profits interests
  • Stock appreciation rights
  • Phantom stock plans

Complex financial instruments and arrangements (including compliance with ASC 805, ASC 815, ASC 825 and ASC 946)

  • Options, swaps, forwards, futures, swaptions and other derivatives
  • Stock warrants with anti-dilution provisions
  • Convertible debt and bifurcation of embedded derivative features
  • Private equity and venture capital portfolio company investments
  • Contingent consideration in business combinations

Experience the CLA Promise


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