ASC 820 Valuation Services: Fair Value & Alternative Investment Portfolio Valuation
Elite Valuation provides ASC 820 Valuation services for U.S. CPA firms, fund accounting practices and outsourced CFO teams, covering Level 3 investments, complex securities, calibration and review-ready workpapers.
Elite Valuation supports U.S. CPA firms, fund accounting practices, outsourced CFO teams and Valuation firms with analytical execution across ASC 820 fair value measurement and alternative investment portfolio Valuation. We can support a single complex investment or a broader recurring portfolio workstream, with roles established at the outset so the U.S. partner retains the client relationship, professional judgment, accounting conclusions, review and final sign-off as applicable.
Specialist ASC 820 & Portfolio Valuation Support for U.S. CPA Firms
ASC 820 is the U.S. GAAP framework for measuring fair value when another requirement calls for it. The objective is a market-based exit price: the price that would be received to sell an asset, or paid to transfer a liability, between market participants at the measurement date.
For private equity, venture capital and other alternative investments, observable prices are often limited. Preferred shares, SAFEs, convertibles and warrants can require enterprise-value analysis, capital-structure modeling and calibration to transaction evidence.
Elite Valuation works as an analytical extension of your U.S. CPA, fund accounting or Valuation team. We prepare the models, schedules and workpapers you agree on, while accounting policy, fair value hierarchy conclusions, disclosures and sign-off stay with the appropriate U.S. professional or client.
Our ASC 820 & Portfolio Valuation Capabilities
From portfolio-company fair value to complex security modeling, support can be scoped around the analytical needs of each reporting or review engagement.
What Is ASC 820 Fair Value Measurement?
ASC 820 is the U.S. GAAP framework that defines fair value and sets the related disclosure requirements. It does not decide when fair value applies, which is set by other U.S. GAAP. Fair value is measured from the perspective of market participants at the measurement date.
The framework uses market, income and cost approaches, and a three-level hierarchy based on input observability: Level 1 (quoted prices for identical instruments in active markets), Level 2 (other observable inputs) and Level 3 (significant unobservable inputs).
For private and alternative investments, Level 3 measurement is common. The Valuation connects company performance, market evidence, security rights and transaction data into a documented fair value conclusion.
Get ASC 820 & Portfolio Valuation Support
When Do You Need ASC 820 or Portfolio Valuation Support?
Fair value support may be needed at recurring reporting dates, after financing or transaction events, or when complex investments require additional analysis and documentation.
Who Needs ASC 820 & Portfolio Valuation Support?
We support professional firms, fund-service providers and investment teams that need specialist fair value execution alongside their existing accounting, reporting or advisory responsibilities.
Fund Accounting & Administration Firms
Family Office & Investment Advisers
Outsourced CFO & Fund CFO Practices
CPA & Accounting Firms
Valuation Boutiques
PE, VC & Alternative Asset Advisers
ASC 820 Fair Value Hierarchy: Level 1, Level 2 & Level 3
ASC 820 classifies the inputs used in a fair value measurement, not the Valuation technique itself. A measurement is categorized in its entirety based on the lowest-level input that is significant to the measurement.
| Hierarchy Area | ASC 820 Requirement | Portfolio Valuation Implication |
|---|---|---|
| Level 1 | Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date. | Typically limited to instruments with directly observable active-market pricing. |
| Level 2 | Observable inputs other than Level 1, such as quoted prices for similar instruments, inactive-market quotes or market-corroborated inputs. | May apply where significant pricing inputs are observable even though the investment itself is not quoted in an active market. |
| Level 3 | Significant unobservable inputs reflecting assumptions market participants would use when observable data is unavailable. | Common in private-company and complex security valuations requiring forecasts, multiples, discount rates or allocation assumptions. |
| Classification Rule | The measurement is classified in its entirety at the lowest level of input that is significant to the overall measurement. | A model using both observable and significant unobservable inputs may therefore be categorized as Level 3. |
| Hierarchy vs Methodology | The hierarchy prioritizes inputs, not valuation techniques. | A DCF, option model or market approach can fall within different levels depending on the significant inputs used. |
| NAV Practical Expedient | Certain eligible investments measured using NAV per share or its equivalent as a practical expedient are not categorized in the hierarchy. | The investment remains subject to the applicable NAV-related disclosure and reconciliation requirements. |
Why a Recent Financing Price Is Not Automatically the Current Fair Value
A recent financing is important market evidence, but the observed price reflects the specific security, rights, transaction terms and conditions that existed on that transaction date. When the transaction price represents fair value and a Valuation technique using unobservable inputs will be used for subsequent measurement, the technique should be calibrated to that transaction price at initial recognition. Subsequent Valuations should then reflect changes in company performance, market multiples, financing terms, liquidity, capital structure and other relevant factors. The financing price is therefore a starting point for analysis, not a permanent mark for every security or every later reporting date.
Information Required for ASC 820 & Portfolio Valuation
A well-supported fair value analysis begins with current portfolio-company information, security terms, transaction evidence and reporting context relevant to the measurement date.
Valuation Methodologies We Use
Discounted Cash Flow (DCF)
Backsolve & Calibration
Guideline Transaction & Secondary Evidence
Guideline Public Company Method
Option Pricing Method (OPM)
PWERM & Hybrid Methods
Need ASC 820 or Portfolio Valuation Support for a Client Engagement?
What Elite Valuation Supports vs What the U.S. Partner Retains
The engagement should begin with a clear workshare model. The U.S. CPA, adviser or client retains the responsibilities that require client ownership, accounting policy, professional judgment or final fair value reporting conclusions, while Elite performs the agreed analytical support.
| Engagement Area | U.S. CPA / Adviser Leads | Elite Valuation Supports |
|---|---|---|
| Engagement acceptance & client relationship | Leads and retains. | Supports only within the agreed scope. |
| Reporting purpose, applicable framework & valuation policy | Determines and approves the accounting, fund or reporting requirements. | Applies the agreed purpose and framework to the valuation analysis. |
| Data collection & management representations | Coordinates with the client or fund and confirms completeness. | Provides a structured request list and identifies analytical gaps or follow-up questions. |
| Unit of account, instrument scope & hierarchy judgments | Determines or approves the accounting conclusions and presentation. | Performs the agreed analysis and documents the valuation inputs relevant to the measurement. |
| Portfolio company / enterprise valuation | Reviews assumptions and conclusion. | Builds the agreed DCF, market approach, transaction or other valuation analysis and supporting research. |
| Security allocation & complex instrument modeling | Reviews instrument scope and accounting treatment. | Performs Backsolve, OPM, PWERM, hybrid or other security-level modeling where appropriate. |
| Calibration, market evidence & prior-period roll-forward | Reviews relevance and approves the reporting conclusion. | Analyzes financing rounds, secondary transactions, prior marks and current-period changes. |
| Workpapers & source trail | Reviews for engagement file, governance or audit requirements. | Prepares models, schedules, source support, sensitivities and assumption documentation. |
| Reviewer / auditor / valuation committee questions | Leads external communication and final response. | Provides technical valuation explanations and model support for agreed questions. |
| Final accounting, disclosures, NAV / investor reporting & sign-off | Retains responsibility. | Provides valuation schedules and inputs only, unless a separate scope expressly states otherwise. |
Our ASC 820 & Portfolio Valuation Support Process
A defined five-step workflow keeps portfolio scope, data requirements, analysis, review and deliverables clear from the outset.
Scope the Engagement
Confirm the reporting purpose, measurement date, portfolio or investment scope, security types, expected deliverables, review standard and division of responsibilities.
Gather & Review Data
Collect financials, portfolio updates, cap tables, transaction evidence, security documents and prior marks. Identify information gaps before modeling begins.
Perform Valuation & Calibration
Estimate portfolio-company value, apply the appropriate market, income or security-allocation methods, and calibrate the analysis to relevant transaction evidence where applicable.
Partner Review & Query Resolution
Share draft models and key assumptions with the U.S. partner, resolve technical questions, and update analysis for agreed factual or market changes.
Deliver Workpapers & Support
Provide the agreed fair value schedules, source trail, models, sensitivities and draft report support for the partner's final review, client communication and engagement file.
Why U.S. CPA & Advisory Firms Work with Elite Valuation
Extend portfolio Valuation capacity with specialist analytical support, structured workpapers and clearly defined engagement responsibilities.
- Flexible Specialist Capacity
Add fair value execution capacity for recurring reporting cycles, peak workloads or complex Level 3 assignments without building a full in-house Valuation team. - Valuation-Focused Execution
Use a specialist team focused on private-company Valuation, complex securities, market research, calibration and documentation through a structured delivery model. - Review-Ready Workpapers
Receive traceable models and source support designed to reduce avoidable back-and-forth during partner, auditor or Valuation committee review.
- Complex Security Support
Handle preferred equity, SAFEs, convertible instruments, warrants and multiple security classes that require security-specific analysis rather than simple pro rata ownership. - Defined Accountability
Clarify from the start what Elite prepares, what the U.S. partner reviews, and who retains final accounting judgment, disclosures, client ownership and sign-off. - Structured India-Based Delivery
Use an India-based analytical team through a clearly scoped workflow, agreed communication cadence and data-handling process for single-investment or recurring portfolio work.
ASC 820 & Portfolio Valuation Deliverables
Deliverables are structured around the agreed scope and designed to support efficient partner review, Valuation governance and engagement documentation.
An India-Based Valuation Partner for U.S. CPA Firms
Elite Valuation is an India-based specialist Valuation and financial advisory firm led by Sagar Shah, a Chartered Accountant (India), Ex-EY professional and IBBI Registered Valuer for Securities or Financial Assets in India. The firm's
U.S. outsourcing proposition is built around Valuation-focused analytical support, structured workpapers and a defined division of responsibilities with the U.S. CPA, fund accounting, advisory or Valuation firm.
These Indian professional credentials should not be interpreted as U.S. CPA licensure or as holding U.S.-specific Valuation credentials such as ASA or ABV. Where an engagement requires compliance with a particular U.S. professional, accounting or appraisal standard, that requirement should be identified and agreed as part of the engagement scope. For outsourced U.S. engagements, the engagement scope should clearly identify the applicable framework, the party responsible for professional judgment, and the party responsible for final reporting or sign-off.
About the Author: Sagar Shah, founder of Elite Valuation, is a Chartered Accountant (India), Company Secretary (CS), IBBI Registered Valuer for Securities or Financial Assets and an Ex-Ernst & Young professional.
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What founders, CFOs, and investors say about working with Elite Valuation.
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"Elite Valuation has been our go-to firm for our all type of Valuations be ie Merger, ESOP, Preferential Valuation of listed companies. They understand the nuances of different regulations, complex Valuation modelling and always ensure the assumptions are well-supported and defensible during audits. Their consistency and reliability make them a trusted partner for all of our Valuation requirements ."
"We engaged Elite Valuation for a merger Valuation involving more than 12 group companies, and the experience was seamless. Mr Sagar Shah and his team built a robust model that satisfied all stakeholders. Their understanding of regulatory requirements and Valuation complexities made them an invaluable partner throughout the process."
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"We have engaged Elite Valuation across a range of assignments, including share issuances, transfers, ESOPs, preferential allotments, rights issues, and merger Valuations. Their execution has consistently reflected strong technical depth and a clear understanding of regulatory frameworks. The team delivers well-structured, defensible Valuation reports with a high level of precision and professionalism. Their ability to manage complex mandates within tight timelines, without compromising on analytical rigor, is particularly noteworthy. Elite Valuation combines technical expertise with commercial insight, making them a dependable partner for Valuation engagements. We highly recommend their services.""
"Over the last few years, we've engaged Elite Valuation for multiple Valuation projects for multiple of our clients. Their reports are always comprehensive, well-documented, and fully aligned with regulatory requirements under Income-tax and FEMA. CA Sagar Shah's insights were instrumental in ensuring a smooth process and his expertise added tremendous value throughout. Highly recommended for multinational enterprises and large firms."
