Technical Reference
Library
Methodology, documentation standards, and audit-interface guidance across every engagement type — 409A equity grants, ASC 820 portfolio marks, ASC 805 purchase price allocations, and ASC 718 stock compensation. We publish for the audit room, not the press release.
Cornerstone References
The Complete Guide to 409A Valuations
When you need one, how it works, what auditors require, and what a defensible deliverable actually contains. The anchor reference for every 409A conversation.
Read the full guide → ASC 820 · PE & VC FundsQuarter-Close Consistency for PE & VC Funds
How institutional marks maintain period-over-period defensibility in ASC 820 Level 3 valuations — structured for LP and auditor review without subjective adjustments.
Read the full guide → Documentation Standard · All EngagementsEvidence Trail Design
Source logs, timestamps, and version control — the infrastructure of reproducible valuation that applies across every engagement type: 409A, PPA, ASC 820, and ASC 718.
Read the full guide →409A Valuation
What Auditors Actually Look For in a 409A
The six specific areas where Big 4 auditors push back — and the documentation structure that pre-answers each inquiry before it is raised.
Read → Timing409A Triggering Events: When a New Valuation Is Required
Seven specific events that require a fresh 409A — with the compliance window for each and the consequences of non-compliance.
Read → Safe HarborIRC 409A Safe Harbor: Qualified Appraiser Requirements
What qualifies for safe harbor protection, what breaks it, and the documentation standard that keeps it intact under IRS and auditor scrutiny.
Read → Audit Prep409A Audit Readiness Checklist
The 25-point checklist your valuation should clear before the auditor opens the file. CFO, controller, and attorney reference.
Read → Audit Interface409A Audit Support Documentation
How to structure workpapers, assumption registers, and supplemental responses to satisfy auditor inquiries during an active review.
Read → PricingHow Much Does a 409A Valuation Cost in 2026?
The four market tiers, what actually drives the fee, and the hidden cost of audit friction that pricing comparisons miss.
Read →Stock Compensation Accounting
ASC 718 for Private Companies: The Complete Guide
Grant date fair value, simplified method, peer volatility sourcing, equity vs. liability classification, modification accounting — the full private company picture.
Read → Inputs ReferenceASC 718 Inputs: Expected Term, Volatility & Risk-Free Rate
How to source, document, and defend each Black-Scholes input. A controller's reference for year-end stock compensation disclosure.
Read → Model SelectionBSM vs. Lattice vs. Monte Carlo: Choosing the Right Model
When each option pricing model is appropriate for stock-based compensation, and how auditors evaluate the model selection rationale.
Read →Equity Allocation & DLOM
OPM vs. Backsolve vs. PWERM: The Decision Framework
The definitive method-selection reference. When each equity allocation approach is appropriate, and how auditors evaluate the selection rationale across engagement types.
Read → Audit RiskDLOM: The Auditor's Favorite Target
Why rule-of-thumb discounts fail under Big 4 scrutiny — and the quantitative model-selection standard that holds up to audit challenge.
Read → Technical BriefDLOM Deep Dive: Chaffe, Finnerty & Quantitative Models
The option-theoretical basis of DLOM, the Chaffe and Finnerty models compared, and the documentation requirements for each approach.
Read → Formula ReferenceThe Finnerty Model DLOM: Formula & Worked Example
The average-strike put formula step by step, a verified worked example, the sensitivity table, and the model's famous ~32.6% ceiling.
Read → Formula ReferenceThe Chaffe Model DLOM: Black-Scholes Put Formula & Example
The protective put mechanics, a fully worked example, and why Chaffe is the documented upper bound of the DLOM model range.
Read → Formula ReferenceThe OPM Backsolve Method: How It Works
Breakpoints, calibration to the last round, and a worked example showing why a $25M post-money backsolves to $18.9M of equity value.
Read →PE & Fund Valuation
ASC 820 Fair Value: The Complete Guide for PE & Fund Managers
Level 1/2/3 hierarchy, Level 3 valuation approaches, calibration discipline, quarterly mark process, independence requirements, ILPA principles, and scalable fund valuation architecture.
Read → Portfolio MarksQuarter-Close Consistency for PE & VC Funds
How to maintain period-over-period defensibility in ASC 820 Level 3 marks — structured for LP review without subjective period-end adjustments.
Read → Decision SupportScenario Modeling Framework
How to define exit scenarios, assign probabilities, and document boundaries for PWERM, ASC 820, and PE mark-to-market analysis.
Read → Market ReferenceWACC Volatility & Risk-Free Rate Selection
With treasury yields in flux, how to normalize the risk-free rate, document the selection rationale, and defend WACC assumptions at quarter-close.
Read →Purchase Price Allocation
Purchase Price Allocation Guide (ASC 805)
The complete PPA reference: intangible asset identification, valuation methods by asset type, useful life, tax amortization benefit, and audit preparation timeline.
Read → Audit InterfaceCommon PPA Audit Questions — Pre-Answered
The 10 questions every PPA faces in audit — and how to structure the binder to answer each one before it is asked. WARA/WACC reconciliation, useful life, royalty rate, and more.
Read → Method SelectionMPEEM vs. Relief from Royalty: Choosing the Right Method
When to apply each intangible asset valuation method, common selection errors, and how auditors evaluate the rationale under ASC 805-20.
Read → Technical BriefCustomer Relationship Valuation: MPEEM Step-by-Step
Eight implementation steps: revenue base, attrition modeling, contributory asset charges, excess earnings, discount rate, and tax amortization benefit.
Read →Defensibility & Reproducibility
Evidence Trail Design
Source logs, timestamps, and version control — the infrastructure of reproducible valuation and the foundation of audit-ready work across all engagement types.
Read → StandardsProfessional Judgment Documentation
How to document every discretionary assumption — the decision made, the alternative considered, and the basis for the conclusion. The audit survival guide.
Read → StandardsThe Reproducibility Standard
What it means for a valuation to be deterministic — any qualified analyst should be able to reconstruct the conclusion entirely from the documented binder.
Read →Working on an engagement?
Tell us your purpose, standard, and timeline. We will recommend the right approach and provide a fixed-fee quote.