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Valuation of derivatives

Valuation of derivatives

ASC 815, Accounting for Derivative Instruments and Hedging Activities, provides guidance on the specific accounting treatment of a multitude of derivative instruments, including convertible debt or warrants. The valuation of these derivative instruments typically depends on their classification and accounting consequences, which impact the complexity, often requiring advanced valuation techniques to calculate their embedded features. Armanino has experience in determining the proper accounting, and in the modeling of complex securities (including lattice and Monte Carlo), providing clients with an independent valuation to support financial reporting requirements.