Providing advisory and valuation services to GPs, LPs and private companies.

Derivatives Valuation (ASC 815 | FAS133)

The use of complex derivatives and hedging instruments has proliferated over the past decades to a point where it is common for companies or investment firms to have these instruments on the company's balance sheet. Examples of derivative or hedging instruments might include:

Interest rate contracts
Foreign exchange contracts
Equity contracts
Commodity contracts
Credit contracts
Certain insurance contracts
Weather derivatives
Embedded derivatives

ASC 815, originally FAS 133, lays out the requirements and framework for valuing and accounting for these intstruments. ASC 815 (FAS 133) requires that the practitioner describe the exposure environment, context for the use of the derivatives, and the organization's strategy to achieve its hedging objectives. It also requires that derivatives be categorized according to the liquidity levels set forward in ASC 820 (FAS 157).

Valuing these contracts involves a great deal of analytical precision, modeling expertise and experience. We invite you to work with Scalar Partners the leader in alternative asset and private equity valuation and modeling.

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