International Financial Reporting Standards Federal Appraisal, LLC has appraisal experts to support your company’s transition and yearly International Financial Reporting Standards (“IFRS”) valuation requirements.  FAC has long been a provider of appraisal services to the accounting industry, and to those in need of complex appraisal services. The main benefit of IFRS is harmonization.  Global businesses and international investors need to have accounting information that they can understand when running businesses and making investment decisions. Convergence to IFRS however presents two major valuation reporting challenges: 1. Valuation variances from reporting period to period, which could increase the volatility of reported earnings from period to period. 2. Cost of appraisals and appraisal management. Under IFRS (if elected), companies will need to revalue certain assets on a regular (yearly) basis.  Therefore, market valuations will vary from period to period and sometimes substantially.  This will result in an increase in volatility of the reported earnings, compared to some current reporting methods.  While reporting the actual market value of the assets owned by a company is one of the main goals of IFRS, special efforts are needed to limit or eliminate earnings volatility that could result from unwise or unnecessary appraisal and appraisal management practices.  FAC offers the appraisal and appraisal management best practices needed to control and minimize the possible volatility in reported values and earnings while keeping costs down. Recommendations to IFRS Adapters and Managers 1. Plan a company-wide integration. IFRS impacts more than just the central business financial reporting; it will impact departmental and subsidiary activities.  Also it will impact more than just investor reporting; it will impact merger and acquisitions (M&A), tax reporting, treasury/borrowing functions, and legal and compliance due diligence. 2. Allocate proper resources. Valuation and appraisal is a specialized professional service.  Adequate IFRS appraisal expertise is often not available within a company. 3. Confirm independence as required in IFRS reporting. Like the need for independent audit services, IFRS appraisal services must be independent and objective, and certified as such. 4. Establish best practices policies and procedures. IFRS, as a principles-based system, allows for significant interpretation. Understanding the implications of various interpretations will require the services of professionals with advanced knowledge and experience.  The advanced knowledge and experience should be utilized early in order to avoid later changes which will impact the volatility of reported earnings.

Bankruptcy Federal Appraisal provides full support to accountants, attorneys, and their clients, be they creditors or debtors. We provide appraisals for fair market valuation, fresh start accounting, damages, and lost income computations, and we provide expert testimony and litigation support. We provide real property, personal property, and business appraisals/services for use in bankruptcy contexts.

Litigation Federal Appraisal, LLC provides expert testimony, dispute resolution, litigation and technical support for complex real estate and business litigation issues.  We provide our clients with both geographical and topical dispute resolution support expertise, regardless of where the assets are located, what type of assets are involved, and what kind of issues are involved. Our services include: Expert Testimony Property Tax Appeals Bankruptcies and Reorganizations Support for Partnership Disputes Support for Landlord/Tenant disputes Traditional and Non-Traditional Valuation and Appraisal Services Value, Income and Yield Analyses Business Interruptions and Damages Estimates Environment Issues Lease Audit & Analysis Financial or Operations Analysis Support for the Cross Examination of Experts Fairness Opinions and Comfort Letters Research Services, including Economic, Demographic and GIS Statistical Analysis Services, including Regression Analysis, Options Pricing Market Positioning Strategies Arbitration and Mediation Because real estate and business appraisal issues are often complex, dispute resolution sometimes requires the coordination of multidisciplinary teams.  We strongly recommend to our clients that they engage valuation experts as early as possible in the dispute resolution process.  We are convinced the great number of lengthy and costly disputes could be avoided or could be resolved more quickly, if the parties to dispute were in possession of proper valuation services earlier in the process.  Unfortunately, all too often, parties to the dispute are under the mistaken impression, that because of the cost, valuation services should not be obtained until late into the process.  There are, in fact, numerous consulting services available to the parties involved in the dispute that are both appropriate for use early in the dispute and are relatively inexpensive. Click Considerations for Valuation and Litigation  for an article written by Mark Pomykacz, the Managing Partner of Federal Appraisal, LLC, on the topic of litigation and real estate appraisal expert. Business Interruption Consulting, Damages Estimates Federal Appraisal, LLC provides consulting and appraisal services to individuals and companies suffering from business interruptions and damages from natural and man-made disasters and accidents.  If the loss or diminution of the use of your real estate is causing a loss in business income and/or is reducing the utility or value of your real estate, then Federal Appraisal, LLC may be able to help you recoup your damages.  Even tenants in damaged or reduced utility space can benefit from our services. The actual or alleged loss or damage might be from contractual breaches, environmental conditions, weather, physical damages, from external-to-the-site conditions, or from malfeasance or non-feasance. Federal Appraisal, LLC provides appraisals of damages, lost income and stigma for negotiations, and court testimony for or against insurance companies, property owners and defendants. Management Consulting Issues and Solutions for Attorneys Federal Appraisal provides user-defined scopes of services and agreed upon procedures services relating to attorneys. Securities and Exchange Commission (SEC) Federal Appraisal, LLC provides the real estate and business appraisals and valuation reporting support required by the SEC.  See our SEC page for more information. Internal Revenue Service (IRS) Federal Appraisal, LLC provides the real estate and business appraisals and valuation reporting support required by the IRS.  See our IRS page for more information. Federal Appraisal, LLC is not a law firm or an accounting firm.  As such it does not offer legal or audit opinions.  Federal Appraisal can obtain and/or manage those services for its clients, and Federal Appraisal can offer referral to law firms and/or accounting firms for such services.

Allocation and Fair Market Appraisals, ASC 805 / IAS 40 The Fair Market Value and Allocation of Assets within a Business Combination Business owner and buyers have numerous reporting obligations concerning the reporting of fair market value, including ASC 805 or International Accounting Standards 40 (IAS 40), ASC 820, ASC 840, ASC 852, ASC 350, and ASC 360.  Further, they have several reporting obligations concerning the allocation of value of assets within a business combination, including ASC 805 (or IAS 40), IRC 1060, and IRC MACRS Depreciation Schedules. Each type of reporting obligations has its own set of requirements, definitions, and classifications. A business combination is the various assets combined to create a business and includes intangibles (contracts, patents, etc.), good will, real property (fee and leased estates, etc.), personal property (machinery, vehicles, etc.), assets and liabilities, equity and debt, and the numerous IRS modified accelerated cost recovery system depreciation schedules (MACRS). As a qualified appraisers as defined by the IRS, Federal Appraisal provides reports to investors and taxpayers with the requisite appraisal documents and advisory support to meet all accounting, SEC, and IRS reporting obligations.  Our allocation appraisals ensure compliance and add value by lowering reporting costs and lowering taxes by providing our client with a sole-source for multi-discipline, high quality appraisals consistent across multiple purposes and uses. ASC 805 Appraisals / IAS 40 The FASB ASC 805, or International Accounting Standards 40 (IAS 40), relates to the reporting of business combinations, when a business is purchased.  It requires properly supported claims concerning the value of the parts of a business combination.  Basically, the purchase price must be allocated, based on their market value, to various numerous assets and liabilities that comprise the business combination.  All companies aiming to comply with GAAP requirements, must comply with ASC 805.  ASC 805 became effective December 15, 2008.  ACS 805 superseded Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 141 and 141R (SFAS 141, SFAS 141R), and APB Opinion No. 16. IAS 40 Investment Property applies to the accounting for property (land and/or buildings) held to earn rentals or for capital appreciation (or both). Investment properties are initially measured at cost, and with some exceptions, may be subsequently measure using a cost model for fair value model, with changes in the fair value under the fair value model being recognized in profit or loss. We can assist with financial reporting requirements, estimating the fair value of a property’s tangible and intangible assets. Our analysis can further assist independent auditors, management specialists, or outside legal counsels, as well as regulatory or tax authorities.  We are competent in AUD-603, Using the Work of an Auditor’s Specialist, AU-C Section 230, Audit Documentation, AU-C Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, and AU-C Section 500, Audit Evidence. Internal Revenue Code Section 1060 Purchase Price Allocation Appraisals Allocation appraisals when used for income tax reporting concerning the purchase of a business (a business combination) are sometimes called purchase price allocations.  Internal Revenue Code (IRC) Section 1060, Special Allocation Rules for Certain Asset Acquisitions require the total purchase price of a business combination be allocated among specifically defined classes of assets.  The asset classes are: Class I – cash and general deposit accounts Class II – actively traded securities Class III – assets that are marked to market annually Class IV – inventory and property held for sale. Class V – assets that do not fall within the other classes Class VI – IRC Section 197 assets (intangible assets) except goodwill and going concern value Class VII – goodwill and going concern value See Purchase Price Allocation for more information. Internal Revenue Code MACRS Cost Segregation Appraisals Cost segregation appraisals allows tax payers to save substantial amounts in income taxes, but only if their claims to the Service are properly supported.  Federal Appraisal provides that support via our allocation appraisals. See Cost Segregation for more information. accounting, accountants, audit, IRS, SEC, IRS reporting, SEC reporting, depreciation, useful lives, investor reporting, purchase price allocation, cost segregation, Internal Revenue Code, ASC 350, intangibles, goodwill, ASC 360, property, plant, and equipment, ASC 410, asset retirement, ASC 805, business combinations, ASC 815, ASC 820, fair value, fair market value, ASC 825, ASC 840, leases, ASC 852, Section 1060, Special Allocation Rules, Section 338, Asset Acquisitions, IAS, FIRTA, IFRS, fair value, FASB, impairment, asset valuation, tax planning, tax compliance, qualified appraiser, mark to market, m2m