ASC 820 fair value marks.
Defensible every quarter.
Quarterly fair value measurement for PE and VC portfolios — Level 3 marks calibrated to entry, documented for your LP auditor, and consistent from one quarter-close to the next.
Fair value is an exit price. Proving it is a discipline.
ASC 820 defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. For a fund holding private positions, almost everything in the book is Level 3 — measured with unobservable inputs that you must support, not just assert.
That is where marks fail audit review: not because the number is unreasonable, but because the calibration, the input sources, and the quarter-over-quarter methodology changes were never documented in a form an auditor can reconstruct.
FairValueX produces the mark and the evidence trail behind it.
You Need Independent ASC 820 Support When:
Every position. Every input. Every judgment. On the record.
Calibration to Entry
Each model is calibrated to the entry transaction, with subsequent-quarter changes attributed to identified value drivers — the analysis auditors ask for first.
Input Provenance
Every significant unobservable input is sourced and timestamped — comparable sets, volatility, discount rates, and marketability discounts included.
Consistency Memo
Quarter-over-quarter methodology consistency is documented explicitly; any technique change carries a written rationale.
Sensitivity Analysis
Reasonable-range sensitivity on the inputs that move the mark — supporting both audit review and ASC 820 quantitative disclosures.
Disclosure Support Pack
Hierarchy classification, Level 3 rollforward support, and technique/input tables mapped to ASC 820 disclosure requirements.
Audit Q&A Pack
Pre-drafted responses to the questions LP auditors actually ask, indexed to the deliverable — plus 12 months of auditor response support.
Built around your quarter-close calendar.
Portfolio Intake
Position list, entry terms, latest company financials and rounds. One structured intake — reused every quarter thereafter.
Methodology per Position
Calibrated backsolve at or near entry; guideline comparables, income approach, or scenario methods as positions season — each choice documented.
Review & Consistency Check
Independent review, anomaly detection, and a quarter-over-quarter consistency pass across the whole book before anything is delivered.
Audit Support
When the fund audit starts, we respond to auditor questions on the delivered marks directly — included for 12 months, not billed by the hour.
Common ASC 820 questions.
ASC 820 (Fair Value Measurement) is the U.S. GAAP standard defining fair value as an exit price — what you would receive selling the asset in an orderly transaction between market participants at the measurement date. It establishes the Level 1 / 2 / 3 hierarchy and the disclosure requirements for fund financial statements.
Level 1: quoted prices in active markets for identical assets. Level 2: other observable inputs (comparable transactions, quoted prices for similar assets). Level 3: unobservable inputs — estimates. Private fund positions are almost always Level 3, which is why the support behind each input carries the audit, not the model itself.
At every reporting date — quarterly for most institutional funds, annually at minimum for audited financials. The quarterly cadence is where consistency discipline pays off: see quarter-close consistency for PE & VC funds.
Calibration to the entry price, support for each significant input, methodology consistency quarter over quarter, sensitivity of the mark to reasonable input ranges, and disclosure completeness (including the Level 3 rollforward). Our deliverable is structured section-by-section around exactly that workflow.
Yes — complex and path-dependent instruments are valued with OPM waterfalls, scenario analysis, or simulation as the terms require, calibrated to the instrument's actual rights and preferences, with the technique choice documented.
Either model works: FairValueX can produce the marks end-to-end, or operate as the independent specialist that documents and pressure-tests marks your team prepares — giving your auditor a third-party evidence trail either way.
ASC 820 references from the library.
ASC 820 Fair Value: The Working Guide
The hierarchy, Level 3 discipline, calibration, and disclosures — in one reference.
Quarter-Close Consistency for PE & VC Funds
Why methodology drift is the #1 audit finding — and the process that prevents it.
WACC, Volatility & Risk-Free Rates
Sourcing and supporting the market inputs that drive Level 3 marks.
Scenario Modeling Framework
Structuring multi-outcome analyses that hold up under review.
Evidence Trail Design
The documentation architecture that lets an auditor reconstruct your mark.
Professional Judgment Documentation
Making judgment calls visible, bounded, and defensible.
Quarter-end is coming either way.
Tell us your position count, instrument mix, and reporting calendar. We'll confirm scope, inputs, and a fixed fee — before work begins.
Request scope + timeline