ASC 820 Case Study: Fair Value Framework for a Global Non-Profit Venture Capital Fund
Background: A global non-profit VC fund, with over 250 active portfolio companies, was informed by its external auditors that it must initiate compliance with ASC 820 for fair value reporting. The fund had no formal valuation policy in place and needed to establish a comprehensive framework that could be adopted by the board and audit committee.
Challenge: The client faced a tight four-month timeline to complete fair value assessments across 250+ investments. The internal finance team lacked prior experience managing such a complex, large-scale valuation effort and needed a repeatable, auditable process that could scale annually.
Our Approach
Leveraged internal teams to gather portfolio data and insights through databases and emails
Drafted a valuation framework, while collaborating closely with audit, to develop tiered methodologies based on materiality.
Created reusable templates, financial models, and flowcharts to guide both valuation execution and board-level understanding.
Focused on long-term efficiency by enabling internal teams to own and repeat the process in future years.
Results
- Clear Process Communication: Board advisors and internal teams had clarity from day one due to visual aids and early engagement.
- Operational Impact: Framework adoption enabled leadership to secure additional internal resources for future valuation cycles.
- Audit Alignment: Auditors were satisfied with the transparency and rigor of the process, contributing to smooth year-end close.