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FRESH START ACCOUNTING

MARSHALL S TEVENS MARKING TO MARKET

Financial reporting requirements associated with an emergence from Chapter 11 of the Bankruptcy Code include the restatement of the company’s balance sheet in accordance with FASB ASC 852. The restatement is essentially a “mark to market” of the assets and liabilities of the company to fair value, similar to a purchase price allocation. This “mark to market” analysis is a critical component of the company's fresh start accounting requirement. Estimating the fair value of assets and liabilities has become more complex with the implementation of FASB ASC 820 (formerly SFAS 157): Fair Value Measurement, and the latest purchase price allocation standards as dictated by FASB ASC 805 (formerly SFAS 141R), particularly in light of the current market conditions.

MARSHALL & STEVENS EXPERTISE Founded in 1932, Marshall & Stevens has great experience with the valuation of intangible assets, real estate, equipment and liabilities for compliance with financial reporting requirements including, but not limited to: • Purchase Price Allocations in accordance with FASB ASC 805, • Impairment Analyses in accordance with FASB ASC 350, and • Fresh Start Accounting in accordance with FASB ASC 852: Reorganizations. Our experienced professionals pride themselves in taking the time to understand the uniqueness of each case. We work in conjunction with your auditors and other key advisors to ensure that all regulatory issues are met and well-documented, and that the client is prepared to emerge from Chapter 11 in compliance with the fresh start accounting process.

BANKRUPTCY & RESTRUCTURING SERVICES Intangible Asset Valuations Financial Instrument Valuations Real Estate Valuation Equipment Valuations Restructuring Advisory Services Litigation Support / Expert Witness Fairness & Solvency Opinions

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www.marshall-stevens.com

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Fresh Start Accounting