Fresh Start Accounting Emerging from Bankruptcy:

Emergence from Chapter 11 bankruptcy often requires valuation services for fresh start accounting to establish an emergence balance sheet that is restated to fair value in accordance with FASB ASC 852, Reorganizations.  The fresh start balance sheet allocates the value of the emerging business to the identifiable assets and liabilities at their fair values in conformity with FASB ASC 805, Business Combinations, and FASB ASC 820, Fair Value Measurements and Disclosures. The basis for the emerging entity’s fresh start reporting is its Reorganization Value based on the definition of fair value in FASB ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Cogent Valuation has extensive experience relative to the valuation of assets and liabilities required to comply with ASC 852. Cogent Valuation’s clients rely on our sophisticated modeling of the intangible assets which provides supportable allocations of fair value for their fair value balance sheet. Our thorough and thoughtful analyses are relied upon by our clients and their audit teams. .