The goal of ASC 805 is to accurately reflect the investment of an acquisition, improve the transparency of a company’s financial reports, and provide more complete financial information to investors. Under ASC 805, a company “must recognize and allocate all identifiable assets acquired and liabilities assumed” and “all assets and liabilities identified must be assigned a portion of the purchase price based on their fair value."¹

However, the process of valuing such assets and liabilities in the context of an asset acquisition can be complex. There are significant differences between valuing conventional real property assets (manufacturing plants in a business combination, for example) and the complex real estate often included in asset acquisitions. While conventional real property valuation may lean exclusively on traditional methodologies, complex real estate – including institutional and investment-grade assets such as multi-tenant office buildings, retail, healthcare assets, etc. – often involves intangible assets and liabilities that are not easily discernible.

Stout professionals offer deep industry and technical knowledge across all property types for fair value accounting principles. From skyscrapers to student housing to healthcare, we solve complex valuation issues for a variety of purposes. We understand the accounting guidance and have the experience and technical know-how to navigate your acquisition accounting requirements. Our professionals are qualified real estate appraisers licensed throughout the nation and have the following designations:

• Accredited Senior Appraiser (ASA)
• Member Appraisal Institute (MAI)
• Counselor of Real Estate (CRE)
• Royal Institution of Chartered Surveyors (MRICS & FRICS)

Our services in valuations of assets and liabilities include:

• Tangible assets
  • Land
  • Buildings
  • Site improvements
  • Tenant improvements
  • Personal property
    
    
• Intangible assets and liabilities
  • Above- and below-market leases
  • Customer relationships
  • In-place leases
  • Avoided lease-origination costs
  • Above- and below-market debt
  • Contingent consideration
  • Easements

In addition to the above-identified assets, we also have the ability to componentize certain real and personal property assets for a more detailed accounting of the fixed-asset ledger.

Who We Serve

• Accounting and financial executives at REITs (public, private, public non-traded) and institutional funds
• Private equity firms and sponsors
• Audit support at any level of accounting