{"id":11675,"date":"2026-02-20T11:43:06","date_gmt":"2026-02-20T11:43:06","guid":{"rendered":"https:\/\/intelekbusinessvaluations.com\/en-us\/?page_id=11675"},"modified":"2026-02-25T10:44:23","modified_gmt":"2026-02-25T10:44:23","slug":"portfolio-valuations-asc-820-fair-value-measurement","status":"publish","type":"page","link":"https:\/\/intelekbusinessvaluations.com\/en-us\/portfolio-valuations-asc-820-fair-value-measurement\/","title":{"rendered":"Portfolio valuations (ASC 820 Fair Value Measurement)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"11675\" class=\"elementor elementor-11675\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-156391a3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"156391a3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-135426bc ot-flex-column-vertical\" data-id=\"135426bc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-51922491 elementor-widget elementor-widget-text-editor\" data-id=\"51922491\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<h2>Why Portfolio Valuations Matter<\/h2><p>When your fund holds investments in privately held companies \u2014 whether equity, debt, convertible instruments, or structured securities \u2014 U.S. GAAP requires a defensible determination of Fair Value at each reporting date. That value directly drives what you report in your fund&#8217;s audited financial statements, what you communicate to limited partners in quarterly capital account statements, and what determines management fees, carried interest calculations, and performance metrics like IRR and TVPI.<\/p><p>Getting this wrong carries real consequences: overstating portfolio values inflates reported performance and can trigger SEC enforcement actions, LP disputes, and fraud allegations; understating values shortchanges fund economics and misrepresents returns. With the SEC&#8217;s 2026 Examination Priorities continuing to flag pricing and valuation practices as a core focus area for investment adviser examinations, the scrutiny on private fund valuations has never been higher.<\/p><p>Working with an accredited business valuation specialist who understands ASC 820&#8217;s fair value framework \u2014 and how auditors and regulators evaluate Level 3 measurements \u2014 is the single most important step to protect your fund, your investors, and your reputation.<\/p><p>InteleK&#8217;s team of accredited valuation specialists delivers audit-ready, ASC 820-compliant portfolio valuations built specifically for private equity, venture capital, growth equity, credit, and multi-strategy funds \u2014 providing defensible conclusions of fair value from both a sophisticated financial and regulatory perspective.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-152bb18 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"152bb18\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-be63895 ot-flex-column-vertical\" data-id=\"be63895\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;none&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-dee7d0b elementor-section-full_width elementor-section-height-min-height elementor-section-height-default\" data-id=\"dee7d0b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-d475a4a ot-flex-column-vertical\" data-id=\"d475a4a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5c0e68c elementor-widget elementor-widget-text-editor\" data-id=\"5c0e68c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<h3 style=\"color: white;\">Book a Free Consultation Call<\/h3>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-080fc0f elementor-widget elementor-widget-text-editor\" data-id=\"080fc0f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<p>One of InteleK\u00b4s accredited appraisers is available to listen to your story and answer any questions you may have.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-21cd5b3 elementor-widget elementor-widget-html\" data-id=\"21cd5b3\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div style=\"width: 100%; display: flex; justify-content: center; align-items: center; padding: 2rem 0;\">\r\n  <a href=\"https:\/\/calendly.com\/andrew-intelek\/google-meet-andrew-mackson-intelek-val-consultation\" target=\"_blank\" style=\"text-decoration:none;display:inline-block;\">\r\n    <div style=\"\r\n      display: flex;\r\n      align-items: center;\r\n      background: #FFFFFF; \/* Changed to white *\/\r\n      border-radius: 5.5rem;\r\n      padding: 0.75rem 3.5rem; \/* Adjusted horizontal padding (from 2rem to 3.5rem) to make it wider *\/\r\n      box-shadow: 0 4px 16px rgba(30,50,70,0.18);\r\n      color: #222f3e; \/* Changed for readability on white background *\/\r\n      font-size: 1.18rem;\r\n      font-weight: 600;\r\n      width: fit-content;\r\n      gap: 1.25rem;\r\n      cursor: pointer;\r\n      transition: box-shadow 0.2s, background 0.2s;\r\n      border: none;\r\n    \"\r\n      onmouseover=\"this.style.boxShadow='0 6px 20px rgba(30,150,252,0.24)';this.style.background='#F0F0F0'; this.style.color='#1e96fc';\" \/* Adjusted hover for white background *\/\r\n      onmouseout=\"this.style.boxShadow='0 4px 16px rgba(30,50,70,0.18)';this.style.background='#FFFFFF'; this.style.color='#222f3e';\" \/* Adjusted hover for white background *\/\r\n    >\r\n      <img decoding=\"async\" src=\"https:\/\/losangelesbusinessvaluations.com\/wp-content\/uploads\/2023\/11\/andrew-cubic.jpg\" alt=\"Andrew Mackson\" style=\"\r\n        width: 52px;\r\n        height: 52px;\r\n        object-fit: cover;\r\n        border-radius: 50%;\r\n        border: 2.5px solid #fff;\r\n        box-shadow: 0 2px 8px rgba(0,0,0,0.12);\r\n        background: #fff;\r\n        flex-shrink: 0;\r\n      \">\r\n      <span style=\"display: flex; flex-direction: column; line-height: 1.15;\">\r\n        Andrew Mackson, CFA, ABV\r\n        <span style=\"font-size: 0.95rem; font-weight: 400; color: #1e96fc; margin-top: 2px;\"> Book Appointment\r\n        <\/span>\r\n      <\/span>\r\n    <\/div>\r\n  <\/a>\r\n<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6807d1 elementor-widget elementor-widget-html\" data-id=\"a6807d1\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div style=\"width: 100%; display: flex; justify-content: center; align-items: center; padding: 2rem 0;\">\r\n  <a href=\"https:\/\/calendly.com\/ryan-maguire-intelekbva\/30min\" target=\"_blank\" style=\"text-decoration:none;display:inline-block;\">\r\n    <div style=\"\r\n      display: flex;\r\n      align-items: center;\r\n      background: #FFFFFF; \/* Changed to white *\/\r\n      border-radius: 5.5rem;\r\n      padding: 0.75rem 3.5rem; \/* Adjusted horizontal padding (from 2rem to 3.5rem) to make it wider *\/\r\n      box-shadow: 0 4px 16px rgba(30,50,70,0.18);\r\n      color: #222f3e; \/* Changed for readability on white background *\/\r\n      font-size: 1.18rem;\r\n      font-weight: 600;\r\n      width: fit-content;\r\n      gap: 1.25rem;\r\n      cursor: pointer;\r\n      transition: box-shadow 0.2s, background 0.2s;\r\n      border: none;\r\n    \"\r\n      onmouseover=\"this.style.boxShadow='0 6px 20px rgba(30,150,252,0.24)';this.style.background='#F0F0F0'; this.style.color='#1e96fc';\" \/* Adjusted hover for white background *\/\r\n      onmouseout=\"this.style.boxShadow='0 4px 16px rgba(30,50,70,0.18)';this.style.background='#FFFFFF'; this.style.color='#222f3e';\" \/* Adjusted hover for white background *\/\r\n    >\r\n      <img decoding=\"async\" src=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2025\/12\/ryan-compressed-2.jpg\" alt=\"Ryan Maguire\" style=\"\r\n        width: 52px;\r\n        height: 52px;\r\n        object-fit: cover;\r\n        border-radius: 50%;\r\n        border: 2.5px solid #fff;\r\n        box-shadow: 0 2px 8px rgba(0,0,0,0.12);\r\n        background: #fff;\r\n        flex-shrink: 0;\r\n      \">\r\n      <span style=\"display: flex; flex-direction: column; line-height: 1.15;\">\r\n        Ryan Maguire, CPA, ABV\r\n        <span style=\"font-size: 0.95rem; font-weight: 400; color: #1e96fc; margin-top: 2px;\"> Book Appointment\r\n        <\/span>\r\n      <\/span>\r\n    <\/div>\r\n  <\/a>\r\n<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fb1133b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fb1133b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9b255ee ot-flex-column-vertical\" data-id=\"9b255ee\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4c106e0 elementor-widget elementor-widget-image\" data-id=\"4c106e0\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Portfolio-valuations-ASC-820-Fair-Value-Measurement-1024x576.png\" class=\"attachment-large size-large\" alt=\"Portfolio valuations (ASC 820 Fair Value Measurement)\" srcset=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Portfolio-valuations-ASC-820-Fair-Value-Measurement-1024x576.png 1024w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Portfolio-valuations-ASC-820-Fair-Value-Measurement-300x169.png 300w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Portfolio-valuations-ASC-820-Fair-Value-Measurement-768x432.png 768w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Portfolio-valuations-ASC-820-Fair-Value-Measurement.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1676c9c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1676c9c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c8ddd3 ot-flex-column-vertical\" data-id=\"5c8ddd3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-737c247 elementor-widget elementor-widget-text-editor\" data-id=\"737c247\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<h2>ASC 820 &#8211; The Fair Value Framework for Portfolio Investments<\/h2><p>ASC 820 (Fair Value Measurement) defines fair value 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. For investment funds, this means every portfolio company investment must be measured at its exit price \u2014 not what the fund paid, not what it hopes to receive, but what a knowledgeable, willing market participant would pay today.<\/p><h3>When Portfolio Valuations Are Required<\/h3><p>Portfolio valuations under ASC 820 are required whenever a fund reports financial results under U.S. GAAP. In practice, this means:<\/p><ul><li>Annual audited financial statements \u2014 Required for virtually all institutional-quality funds and subject to external audit review of every material fair value measurement.<\/li><li>Quarterly capital account statements \u2014 Most limited partnership agreements (LPAs) require quarterly NAV reporting, which necessitates updated fair value estimates for all material holdings.<\/li><li>Interim reporting triggers \u2014 Material events such as new financing rounds, significant operational changes, or market dislocations may require interim fair value updates between regular reporting periods.<\/li><li>Fund-of-funds and secondary transactions \u2014 Investors acquiring or selling fund interests rely on reported NAVs that are anchored to ASC 820-compliant portfolio valuations.<\/li><\/ul><h3>The Fair Value Hierarchy Applied to Portfolio Investments<\/h3><p>ASC 820 establishes a three-level hierarchy that prioritizes the inputs used in valuation:<\/p><p>Level 1 \u2014 Quoted prices in active markets for identical investments. Applies to publicly traded securities held by the fund with sufficient trading volume.<\/p><p>Level 2 \u2014 Observable inputs other than Level 1 prices, such as quoted prices for similar securities, recent transaction prices in less active markets, or market-corroborated inputs like yield curves and credit spreads. Applies to certain syndicated loans, traded debt, and securities with observable but imperfect market data.<\/p><p>Level 3 \u2014 Unobservable inputs reflecting the fund&#8217;s own assumptions about what market participants would use. This is where the vast majority of private equity, venture capital, and credit fund investments are classified \u2014 requiring sophisticated valuation models, well-documented assumptions, and the highest degree of audit scrutiny.<\/p><p>Level 3 measurements are the primary focus of auditor testing, PCAOB inspection findings, and SEC examination inquiries. InteleK&#8217;s portfolio valuations are engineered from the outset to satisfy the documentation and transparency requirements that auditors and regulators expect for every Level 3 fair value measurement.<\/p><hr \/><h2>Equity Investment Valuations<\/h2><p>Valuing equity investments in privately held portfolio companies is the core of most fund valuation programs. Unlike publicly traded stocks with readily available market prices, private company equity requires the valuation specialist to estimate enterprise value and then allocate that value across the capital structure to determine the fair value of the specific securities held by the fund.<\/p><h3>Enterprise Value Determination<\/h3><p>The starting point for any equity valuation is estimating the total enterprise value of the portfolio company. InteleK applies the valuation approaches most appropriate for the company&#8217;s stage, industry, and available data:<\/p><p>Market Approach \u2014 Uses valuation multiples (EV\/Revenue, EV\/EBITDA, EV\/Gross Profit) derived from comparable public companies or comparable M&amp;A transactions, applied to the portfolio company&#8217;s financial metrics. This is the most widely used approach for growth-stage and mature portfolio companies with measurable financial performance.<\/p><p>Income Approach (DCF) \u2014 Projects the portfolio company&#8217;s future cash flows and discounts them to present value at a rate reflecting the risk of those cash flows. Most relevant for companies with predictable revenue streams or where the market approach does not capture company-specific growth dynamics.<\/p><p>Calibration to Recent Transactions \u2014 When the fund or other investors have recently transacted at an arm&#8217;s-length price, ASC 820 and the 2025 IPEV Valuation Guidelines require the valuation to be calibrated to that transaction price. Calibration means adjusting the valuation model inputs so that the model output equals the transaction price at the transaction date \u2014 then rolling forward to the current measurement date using updated financial performance, market conditions, and company-specific developments. The transaction price is not automatically fair value at subsequent dates; it is a starting point that must evolve.<\/p><p>Cost Approach \/ Price of Recent Investment \u2014 For very early-stage companies with limited financial history, the price of the most recent financing round may approximate fair value \u2014 but only if no significant events have occurred since that round. The 2025 IPEV Guidelines emphasize that this approach has inherent limitations and should be supplemented with qualitative and quantitative analysis of developments since the investment date.<\/p><h3>Equity Allocation \u2014 Waterfall and Option Pricing Models<\/h3><p>Once enterprise value is determined, it must be allocated across the portfolio company&#8217;s capital structure to determine the fair value of the specific class of equity held by the fund. This is critical because preferred stock, common stock, and other equity classes have different economic rights \u2014 liquidation preferences, participation features, conversion ratios, anti-dilution protections \u2014 that directly affect their respective fair values.<\/p><p>Waterfall Analysis (Current Value Method) \u2014 Distributes the estimated enterprise value across each class of equity in order of liquidation priority. Most appropriate when a near-term liquidity event is expected or when the company&#8217;s value is close to or below the aggregate liquidation preferences.<\/p><p>Option Pricing Method (OPM) \u2014 Treats each class of equity as a call option on the enterprise value with different strike prices (defined by the liquidation preferences). Uses a Black-Scholes framework to allocate value, incorporating expected time to liquidity and volatility. Most appropriate for early-to-mid-stage companies where a liquidity event is uncertain and the capital structure is complex.<\/p><p>OPM Backsolve \u2014 A variant that calibrates the OPM to the price of a recent financing round (the &#8220;known&#8221; data point) to solve for the implied enterprise value, then applies that calibrated model to determine the fair value of all other equity classes. Widely used in venture capital and growth equity portfolios.<\/p><p>Hybrid Methods \u2014 Probability-weighted combinations of the waterfall and OPM approaches, used when multiple liquidity scenarios (IPO, M&amp;A, continuation) have meaningfully different probabilities and timing.<\/p><hr \/><h2>Debt &amp; Credit Investment Valuations<\/h2><p>For credit-focused funds, BDCs, CLO vehicles, and funds holding mezzanine or structured debt, ASC 820 requires fair value measurement of debt instruments that often lack active secondary markets.<\/p><h3>Valuation Approaches for Debt Instruments<\/h3><p>Discounted Cash Flow \/ Yield Analysis \u2014 Projects contractual cash flows (interest, principal, fees) and discounts them at a market-participant required yield. The discount rate reflects current market yields for instruments with comparable credit risk, tenor, seniority, and collateral \u2014 not the contractual coupon rate.<\/p><p>Market Approach \u2014 Comparable Transactions \u2014 Uses observed yields or prices from secondary market transactions in comparable debt instruments (similar credit quality, industry, structure) to benchmark the fair value of the fund&#8217;s holdings.<\/p><p>Enterprise Value Coverage Analysis \u2014 For debt secured by the enterprise value of the borrower, the valuation assesses whether the estimated enterprise value provides sufficient coverage for the debt position. When coverage is tight, the debt may trade below par; when coverage is ample, the debt may be valued at or near par (adjusted for yield).<\/p><h3>Key Considerations for Credit Portfolios<\/h3><p>Credit Quality Changes \u2014 Deterioration or improvement in the borrower&#8217;s financial condition since origination directly affects fair value. Auditors expect the valuation to reflect current credit metrics, not origination-date underwriting.<\/p><p>PIK and Deferred Interest \u2014 Payment-in-kind features, capitalized interest, and other non-cash accruals must be incorporated into the fair value analysis, reflecting market-participant expectations about ultimate collectability.<\/p><p>Unit of Account \u2014 ASC 820 requires careful consideration of the unit of account. When a fund holds both equity and debt in the same portfolio company, each instrument is generally valued separately based on its specific rights and priority in the capital structure.<\/p><hr \/><h2>The 2025 IPEV Valuation Guidelines \u2014 What Changed<\/h2><p>The International Private Equity and Venture Capital Valuation (IPEV) Board published updated guidelines in 2025, and these are now the global best-practice framework referenced by auditors, regulators, and institutional investors alongside ASC 820. Key updates relevant to 2026 portfolio valuations include:<\/p><p>Calibration Is Not Optional \u2014 The 2025 guidelines reinforce that fair value must evolve from one measurement date to the next. The price of a recent investment is not automatically fair value at subsequent reporting dates. Funds must demonstrate how they have calibrated to the transaction and then adjusted for changes in performance, market conditions, and company-specific events.<\/p><p>ESG Integration \u2014 The updated guidelines require that environmental, social, and governance factors be integrated quantitatively into fair value analysis where they have a material impact on value \u2014 not just referenced qualitatively.<\/p><p>Enhanced Disclosure Expectations \u2014 Greater emphasis on transparency in valuation processes, governance frameworks, and the documentation trail supporting each fair value conclusion.<\/p><p>Expanded Guidance on Complex Structures \u2014 Additional guidance on valuing structured instruments, earn-outs, milestone-based payments, and hybrid securities commonly found in venture capital and growth equity portfolios.<\/p><p>InteleK&#8217;s valuation methodology is fully aligned with both ASC 820 and the 2025 IPEV Guidelines, ensuring your portfolio valuations meet the expectations of U.S. and international auditors and investors alike.<\/p><hr \/><h2>SEC &amp; Regulatory Scrutiny \u2014 The 2026 Landscape<\/h2><p>Portfolio valuations are not just an accounting exercise \u2014 they are a regulatory compliance obligation. The SEC&#8217;s Division of Examinations has consistently identified pricing and valuation practices as a priority area for investment adviser examinations, and the 2026 Examination Priorities continue this focus.<\/p><p>What the SEC Is Looking For:<\/p><ul><li>Consistency of valuation methodology across reporting periods \u2014 and documented justification for any changes<\/li><li>Independence and qualifications of the valuation specialist<\/li><li>Whether the fund&#8217;s valuation policy is actually followed in practice \u2014 not just documented on paper<\/li><li>Adequacy of valuation governance, including the role and independence of the valuation committee<\/li><li>Whether valuations reflect current market conditions or are stale \/ anchored to outdated inputs<\/li><li>Proper classification within the ASC 820 fair value hierarchy and adequate Level 3 disclosures<\/li><\/ul><p>Recent Enforcement Context: Federal authorities have signaled renewed focus on private fund valuation practices, with the SDNY and SEC examining whether advisers&#8217; valuations are consistent with their stated policies and whether material valuation changes are properly disclosed to investors. An independent, well-documented portfolio valuation from an accredited specialist is the strongest defense against regulatory challenge.<\/p><hr \/><h2>InteleK&#8217;s Portfolio Valuation Approach<\/h2><p>Our accredited appraisers bring deep ASC 820 and IPEV compliance experience to every portfolio valuation engagement. Here&#8217;s what sets our process apart:<\/p><p>Audit-Ready Deliverables From Day 1 \u2014 Every valuation memo is structured and documented to satisfy the requirements of Big Four, mid-tier, and national audit firms. We understand what auditors test \u2014 because we&#8217;ve been through the review process hundreds of times \u2014 and we build that standard into every engagement.<\/p><p>Full Suite of Valuation Methodologies \u2014 We apply Market, Income, and Cost approaches as appropriate, with rigorous calibration to recent transactions. Our equity allocation expertise spans waterfall analysis, OPM, OPM backsolve, and hybrid methods \u2014 ensuring the right tool is applied to each portfolio company&#8217;s capital structure and stage.<\/p><p>Calibration-First Philosophy \u2014 Consistent with ASC 820 and the 2025 IPEV Guidelines, every subsequent-period valuation begins with calibration to the most recent arm&#8217;s-length transaction, then systematically adjusts for changes in performance, market conditions, and company-specific events. Every adjustment is documented and defensible.<\/p><p>Debt &amp; Credit Expertise \u2014 Our team values the full spectrum of credit instruments \u2014 senior secured, mezzanine, unitranche, PIK, convertible notes, and structured securities \u2014 using yield analysis, enterprise value coverage, and market-comparable approaches tailored to the specific instrument&#8217;s terms.<\/p><p>ASC 820 Fair Value Hierarchy Compliance \u2014 All Level 3 measurements include detailed disclosure of significant unobservable inputs, the valuation techniques applied, and sensitivity analyses \u2014 meeting ASC 820-10-50 disclosure requirements and giving your auditor a clear path to their own assessment.<\/p><p>Scalable for Large Portfolios \u2014 Whether your fund holds 5 investments or 50, our process is designed to deliver consistent, high-quality valuations across the entire portfolio within your reporting timeline. We manage engagement timelines to align with your quarterly close and annual audit schedule.<\/p><p>Collaboration With Your Fund Team \u2014 We work alongside your CFO, controller, fund administrator, auditor, and valuation committee to ensure the valuations integrate seamlessly into your reporting workflow and governance framework.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-48bed44 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"48bed44\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6f8680f 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href=\"https:\/\/intelekbusinessvaluations.com\/en-us\/about-us\/andrew-mackson\/\">Andrew Mackson,                                                              CFA, ABV<\/a><\/h6>\t\t\t\t<span>co-founder & Partner<\/span>\t\t\t<\/div>\n\t\t<\/div>\n\t        \n\t    \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-0c60874 ot-flex-column-vertical\" data-id=\"0c60874\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8d9137d elementor-widget elementor-widget-imember\" data-id=\"8d9137d\" data-element_type=\"widget\" data-widget_type=\"imember.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\n\t\t<div class=\"ot-team team-1\">\n\t\t\t<div class=\"team-thumb\">\n\t\t\t\t<a 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class=\"ot-flaticon-signs\"><\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<div class=\"team-info\">\n\t\t\t\t<h6 class=\"tname\"><a href=\"https:\/\/intelekbusinessvaluations.com\/en-us\/about-us\/cameron-braid\/\">Cameron Braid,<br>                                                            MBA<\/a><\/h6>\t\t\t\t<span>Co-Founder & Partner<\/span>\t\t\t<\/div>\n\t\t<\/div>\n\t        \n\t    \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-7bcf76a ot-flex-column-vertical\" data-id=\"7bcf76a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6455016 elementor-widget elementor-widget-imember\" data-id=\"6455016\" data-element_type=\"widget\" data-widget_type=\"imember.default\">\n\t\t\t\t<div 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}\r\n\r\n    @media (max-width: 992px) {\r\n      .faq-grid {\r\n        grid-template-columns: 1fr;\r\n      }\r\n      .faq-header h3 { font-size: 2.5rem; }\r\n    }\r\n  <\/style>\r\n\r\n  <div class=\"faq-section-wrapper\">\r\n    <div class=\"faq-header\">\r\n      <h3>Portfolio Valuation (ASC 820) FAQs<\/h3>\r\n      <p>Expert insights into ASC 820 fair value measurement for private equity, venture capital, and credit fund portfolio investments in 2026.<\/p>\r\n      <p style=\"font-size: 0.9rem; opacity: 0.8;\">\u26a0\ufe0f General information only. InteleK Business Valuations & Advisory Pty Ltd recommends professional accounting and legal advice for all financial reporting matters.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"search-container\">\r\n      <div class=\"search-title\">Search 2026 Portfolio Valuation & ASC 820 Topics<\/div>\r\n      <div class=\"search-wrapper\">\r\n        <input type=\"text\" class=\"search-input\" id=\"faqSearchInput\" placeholder=\"Search for ASC 820, fair value, Level 3, calibration, OPM, audit...\">\r\n        <button class=\"search-button\" id=\"faqSearchButton\">Search<\/button>\r\n      <\/div>\r\n    <\/div>\r\n\r\n    <div class=\"faq-grid\" id=\"faqGrid\">\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What is ASC 820 and why does it matter for fund portfolio valuations?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            ASC 820 (Fair Value Measurement) is the U.S. GAAP standard that defines fair value, establishes a framework for measuring it, and sets disclosure requirements. For private equity, venture capital, and credit funds, ASC 820 requires every portfolio investment to be measured at its exit price \u2014 the price a knowledgeable, willing market participant would pay today \u2014 not what the fund originally paid. This standard governs your audited financial statements, quarterly NAV reporting, and LP capital account statements, making it the foundation of your fund's reported performance.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>How often must portfolio investments be valued under ASC 820?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Portfolio investments must be measured at fair value whenever the fund reports financial results under U.S. GAAP. In practice, this means at least annually for audited financial statements. Most institutional-quality funds also require quarterly fair value updates for NAV reporting and LP capital account statements. Additionally, material events \u2014 such as a new financing round, significant operational change, or market dislocation \u2014 may trigger interim fair value updates between regular reporting periods.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What is the ASC 820 fair value hierarchy and where do portfolio investments fall?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            ASC 820 establishes three levels of inputs. Level 1 uses quoted prices in active markets for identical assets (publicly traded securities). Level 2 uses observable inputs like quoted prices for similar assets or market-corroborated data (certain syndicated loans, traded debt). Level 3 uses unobservable inputs reflecting the entity's own market-participant assumptions. The vast majority of private equity, venture capital, and credit fund investments are classified as Level 3 \u2014 requiring sophisticated valuation models, well-documented assumptions, and the highest degree of audit and regulatory scrutiny.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What is \"calibration\" and why do auditors focus on it?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Calibration is the process of adjusting valuation model inputs so that the model output equals the price of a recent arm's-length transaction at the transaction date \u2014 then rolling forward to the current measurement date using updated financial performance, market conditions, and company-specific developments. Both ASC 820 and the 2025 IPEV Valuation Guidelines require calibration. The transaction price is not automatically fair value at subsequent dates; it is a starting point that must evolve. Auditors focus heavily on calibration because it demonstrates that the valuation is anchored to observable market evidence.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What valuation methods are used for equity investments in portfolio companies?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            The most common approaches include the Market Approach (applying EV\/Revenue, EV\/EBITDA, or EV\/Gross Profit multiples from comparable public companies or M&A transactions), the Income Approach (discounted cash flow analysis), and calibration to the price of a recent investment. For very early-stage companies with limited financial history, the cost approach or price of the most recent financing round may approximate fair value \u2014 but only if no significant events have occurred since that round. The appropriate method depends on the portfolio company's stage, industry, and available data.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What is equity allocation and why does it matter for funds holding preferred stock?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Once enterprise value is estimated, it must be allocated across the portfolio company's capital structure to determine the fair value of the specific class of equity the fund holds. Preferred stock, common stock, and other classes have different economic rights \u2014 liquidation preferences, participation features, conversion ratios, anti-dilution protections \u2014 that directly affect their respective fair values. Allocation methods include the waterfall analysis (current value method), the Option Pricing Method (OPM), OPM backsolve, and hybrid probability-weighted approaches. Selecting the wrong allocation method can materially misstate the fair value of your fund's holdings.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What is the Option Pricing Method (OPM) and when is it used?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            The OPM treats each class of equity as a call option on the enterprise value, with different strike prices defined by the liquidation preferences. It uses a Black-Scholes framework incorporating expected time to liquidity and volatility to allocate value across the capital structure. The OPM is most appropriate for early-to-mid-stage companies where a liquidity event is uncertain and the capital structure is complex. The OPM backsolve variant calibrates the model to the price of a recent financing round to solve for implied enterprise value, then determines the fair value of all other equity classes.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>How are debt and credit investments valued under ASC 820?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Debt instruments that lack active secondary markets are valued using discounted cash flow \/ yield analysis (projecting contractual cash flows and discounting at a market-participant required yield), comparable transaction pricing (benchmarking against observed yields on similar instruments), and enterprise value coverage analysis (assessing whether the borrower's enterprise value provides sufficient coverage). Key considerations include credit quality changes since origination, PIK and deferred interest features, and the specific seniority and collateral securing the instrument.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What changed in the 2025 IPEV Valuation Guidelines?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            The 2025 IPEV Guidelines \u2014 the global best-practice framework referenced by auditors and institutional investors alongside ASC 820 \u2014 reinforced several key principles: calibration is not optional and fair value must evolve from one measurement date to the next; ESG factors must be integrated quantitatively into fair value analysis where material; enhanced disclosure and documentation expectations for valuation processes and governance; and expanded guidance on valuing complex structures including earn-outs, milestone-based payments, and hybrid securities common in VC and growth equity portfolios.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What is \"unit of account\" and how does it affect portfolio valuations?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            The unit of account determines what is being measured \u2014 a critical concept when a fund holds multiple tranches of investment in the same portfolio company. Under ASC 820, when a fund holds both equity and debt in the same company, each instrument is generally valued separately based on its specific rights and priority in the capital structure. The unit of account also determines whether blockage discounts or portfolio-level adjustments are appropriate. Auditors scrutinize unit of account determinations because they can materially affect the reported fair value of individual holdings.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>Is the SEC examining portfolio valuation practices in 2026?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Yes. The SEC's 2026 Examination Priorities continue to flag pricing and valuation practices as a focus area for investment adviser examinations. The SEC is looking at consistency of methodology across reporting periods, independence and qualifications of the valuation specialist, whether the fund's valuation policy is actually followed in practice, adequacy of valuation governance and committee independence, whether valuations reflect current market conditions or are anchored to stale inputs, and proper ASC 820 fair value hierarchy classification with adequate Level 3 disclosures. An independent, well-documented portfolio valuation is the strongest defense.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What are the risks of overstating or understating portfolio values?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Overstating values inflates reported performance metrics (IRR, TVPI), overstates management fees and carried interest, and can trigger SEC enforcement actions, LP disputes, and fraud allegations. Understating values shortchanges fund economics, misrepresents returns to prospective investors, and can create issues when LPs transact based on reported NAVs. Both directions create legal, regulatory, and reputational risk. The goal is an accurate, defensible fair value conclusion \u2014 not an optimistic or conservative one.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>What does an auditor look for when reviewing portfolio valuations?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Auditors test the reasonableness of every material Level 3 fair value measurement. They evaluate whether the valuation methodology is appropriate for the investment type, whether assumptions (multiples, discount rates, volatility, time to exit) are supported by market data, whether calibration to recent transactions was properly performed, whether the equity allocation method matches the capital structure and expected liquidity scenario, and whether the documentation is sufficient to independently reproduce the conclusion. PCAOB inspection findings consistently cite portfolio valuations as a leading area of audit deficiency.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>Can we use the last financing round price as fair value?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Not automatically. While the price of a recent arm's-length financing round is a relevant data point, ASC 820 and the 2025 IPEV Guidelines are clear that the transaction price is not automatically fair value at subsequent measurement dates. You must assess whether significant events have occurred since the round \u2014 changes in financial performance, market conditions, capital structure, or company-specific developments \u2014 and adjust accordingly. Auditors will challenge any valuation that simply carries forward a stale round price without documented analysis of intervening changes.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n      <div class=\"faq-card\" data-faq-item>\r\n        <button class=\"faq-question-trigger\">\r\n          <h3>Why should our fund engage an independent valuation specialist?<\/h3>\r\n          <svg class=\"faq-icon\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\"><path d=\"M6 9l6 6 6-6\"\/><\/svg>\r\n        <\/button>\r\n        <div class=\"faq-answer\">\r\n          <div class=\"faq-answer-content\">\r\n            Auditors, LPs, and regulators increasingly expect independent, third-party valuation support for Level 3 portfolio investments \u2014 particularly given the inherent conflict of interest when a fund manager values its own portfolio. An accredited specialist (ABV, ASA, CVA, or CFA) brings objectivity, technical rigor, and defensibility that strengthens your financial reporting and satisfies your valuation committee, auditor, and investor due diligence requirements. InteleK's work product is designed to satisfy Big Four, mid-tier, and national audit firm requirements from Day 1.\r\n          <\/div>\r\n        <\/div>\r\n      <\/div>\r\n\r\n    <\/div>\r\n\r\n    <div class=\"no-results\" id=\"noResults\">\r\n      No portfolio valuation topics found matching your search. Try keywords like \"ASC 820\", \"Level 3\", \"calibration\", \"OPM\", \"IPEV\", or \"audit\".\r\n    <\/div>\r\n  <\/div>\r\n\r\n  <script>\r\n    (function () {\r\n      document.addEventListener('DOMContentLoaded', function() {\r\n        const searchInput = document.getElementById('faqSearchInput');\r\n        const searchButton = document.getElementById('faqSearchButton');\r\n        const faqCards = document.querySelectorAll('[data-faq-item]');\r\n        const noResults = document.getElementById('noResults');\r\n\r\n        faqCards.forEach(card => {\r\n          const trigger = card.querySelector('.faq-question-trigger');\r\n          trigger.addEventListener('click', () => {\r\n            const isActive = card.classList.contains('active');\r\n            faqCards.forEach(c => c.classList.remove('active'));\r\n            if (!isActive) {\r\n              card.classList.add('active');\r\n            }\r\n          });\r\n        });\r\n\r\n        function performSearch() {\r\n          const searchTerm = searchInput.value.toLowerCase().trim();\r\n          let visibleCount = 0;\r\n\r\n          faqCards.forEach(card => {\r\n            const question = card.querySelector('h3').textContent.toLowerCase();\r\n            const answer = card.querySelector('.faq-answer-content').textContent.toLowerCase();\r\n\r\n            if (question.includes(searchTerm) || answer.includes(searchTerm)) {\r\n              card.style.display = 'block';\r\n              visibleCount++;\r\n            } else {\r\n              card.style.display = 'none';\r\n            }\r\n          });\r\n\r\n          noResults.style.display = (visibleCount === 0) ? 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elementor-element-f5f2b2c elementor-widget elementor-widget-text-editor\" data-id=\"f5f2b2c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<p>Downloadable Ebook \u2013 Estate Planning for Business Owners &amp; Their Advisors \u2013 A Guide Through the Business Valuation Process.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a5e7b3e elementor-align-center elementor-widget elementor-widget-ibutton\" data-id=\"a5e7b3e\" data-element_type=\"widget\" data-widget_type=\"ibutton.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ot-button\">\n\t\t\t<a href=\"https:\/\/intelekbusinessvaluations.com\/en-us\/business-valuation-ebooks\/\" class=\"octf-btn octf-btn-main\">FREE DOWNLOADABLE EBOOK<\/a>\n\t    <\/div>\n\t    \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section 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src=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.40-AM-770x1024.png\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.40-AM-770x1024.png 770w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.40-AM-225x300.png 225w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.40-AM-768x1022.png 768w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.40-AM.png 1122w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-cd79809 ot-flex-column-vertical\" data-id=\"cd79809\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-06c9ea4 elementor-widget elementor-widget-image\" data-id=\"06c9ea4\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"767\" height=\"1024\" src=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.32-AM-767x1024.png\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.32-AM-767x1024.png 767w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.32-AM-225x300.png 225w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.32-AM-768x1025.png 768w, https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2023\/03\/Screen-Shot-2023-03-01-at-11.01.32-AM.png 1120w\" sizes=\"(max-width: 767px) 100vw, 767px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8390498 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8390498\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5ff0d97 ot-flex-column-vertical\" data-id=\"5ff0d97\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-afec36e elementor-widget elementor-widget-text-editor\" data-id=\"afec36e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<p>Visit our different articles;<\/p><ol><li><strong><a href=\"https:\/\/intelekbusinessvaluations.com\/en-us\/business-valuations\/how-discounts-can-lower-the-taxable-value-of-your-business-for-estate-planning\/\">How Discounts can Lower the Taxable Value of Your Business for Estate Planning<\/a><\/strong><\/li><li><p class=\"entry-title\"><a href=\"https:\/\/intelekbusinessvaluations.com\/en-us\/business-valuations\/10-things-your-business-valuation-report-must-include-for-estate-planning\/\"><strong>10 Things Your Business Valuation Report Must Include for Estate Planning<\/strong><\/a><\/p><\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Why Portfolio Valuations Matter When your fund holds investments in privately held companies \u2014 whether equity, debt, convertible instruments, or structured securities \u2014 U.S. GAAP requires a defensible determination of Fair Value at each reporting date. That value directly drives what you report in your fund&#8217;s audited financial statements, what you communicate to limited partners [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11614,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Portfolio valuations (ASC 820 Fair Value Measurement) - Intelek Business Valuations United States<\/title>\n<meta name=\"description\" content=\"When you transfer business interests whether through a lifetime gift or at death, the IRS requires a defensible determination...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/intelekbusinessvaluations.com\/en-us\/portfolio-valuations-asc-820-fair-value-measurement\/\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/#website\",\"url\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/\",\"name\":\"Intelek Business Valuations United States\",\"description\":\"Valuations and Advisory United States\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/portfolio-valuations-asc-820-fair-value-measurement\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Gift-and-estate-tax-IRS-form-709-706.png\",\"contentUrl\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/wp-content\/uploads\/2026\/02\/Gift-and-estate-tax-IRS-form-709-706.png\",\"width\":1280,\"height\":720,\"caption\":\"Gift and estate tax (IRS form 709 & 706) compliance services intelek\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/portfolio-valuations-asc-820-fair-value-measurement\/#webpage\",\"url\":\"https:\/\/intelekbusinessvaluations.com\/en-us\/portfolio-valuations-asc-820-fair-value-measurement\/\",\"name\":\"Portfolio valuations (ASC 820 Fair Value Measurement) - 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