Cap Table Management
Centralized Cap Table Management for CPA & Advisory Firms
Simplify cap table management, ASC 820 & IRS 409A valuations, and generate audit-ready reports with confidence.
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NEXT-GEN VALUATION PLATFORM
Smart Cap Table Management for Accurate Ownership Tracking
ZT Valuation simplifies cap table management by providing a centralized, real-time view of company ownership. Track shareholders, equity issuances, and option grants with complete accuracy—without spreadsheets or manual errors. Designed for founders, finance teams, and CPA firms who demand precision and audit-ready records.
How ASC 820 Defines Fair Value
ASC 820 defines fair value as a market-based measurement, not an entity-specific estimate. The standard focuses on how independent market participants would price an asset or liability at the measurement date under current market conditions.
By emphasizing market participant assumptions, ASC 820 promotes consistency across financial reporting periods and improves comparability between companies, funds, and industries.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Under ASC 820, fair value represents an exit price—the amount that would be received upon selling an asset or transferring a liability, rather than the price originally paid to acquire it.
The measurement assumes an orderly transaction between independent market participants as of a specific valuation date. When available, observable market inputs are prioritized over internal assumptions to enhance reliability, audit defensibility, and financial reporting confidence.
ASC 820 Fair Value Hierarchy
ASC 820 establishes a fair value hierarchy that prioritizes valuation inputs based on their observability in the market. The hierarchy improves consistency and comparability by emphasizing observable inputs whenever available.
Level 1
Quoted Market Prices
Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
Examples: Publicly traded equity securities, exchange-traded instruments.
Level 2
Observable Market Inputs
Level 2 inputs include observable inputs other than quoted prices, such as prices for similar assets, interest rates, yield curves, and market-corroborated data.
Examples: Comparable company multiples, observable market benchmarks.
Level 3
Unobservable Inputs
Level 3 inputs rely on internal assumptions when observable market data is not available and reflect management’s best estimate of market participant assumptions.
Examples: Private company equity, complex or illiquid financial instruments.
Valuation Approaches Under ASC 820
ASC 820 allows multiple valuation approaches depending on the nature of the asset or liability and the availability of market data. The objective is to maximize the use of observable inputs whenever possible to ensure reliable and auditable fair value measurements.
Market Approach
The market approach estimates fair value by referencing prices and relevant information generated by market transactions involving identical or comparable assets.
This approach is commonly applied when reliable market data and comparable company or transaction information is available.
Common use: Comparable company analysis, precedent transactions.
Income Approach
The income approach converts expected future economic benefits into a present value using appropriate discount rates that reflect risk and timing of cash flows.
It is widely used when value is driven by forecasted cash flows and risk-adjusted return assumptions.
Common use: Discounted cash flow (DCF), option pricing models.
Cost Approach
The cost approach reflects the amount that would be required currently to replace the service capacity of an asset, adjusted for obsolescence.
This approach is typically used when assets do not generate direct cash flows or when observable market data is limited.
Common use: Replacement cost, reproduction cost analysis.
Key Benefits of ASC 820–Compliant Valuations
Applying ASC 820 ensures fair value measurements are transparent, consistent, and defensible across financial reporting, audits, and regulatory reviews.
Audit-Ready Fair Value
Valuations are aligned with U.S. GAAP requirements and supported by documented assumptions, methodologies, and market data.
Improved Comparability
Standardized measurement principles ensure consistency across reporting periods, entities, portfolios, and asset classes.
Regulatory Confidence
Supports compliance with regulatory scrutiny by reflecting how independent market participants would price assets or liabilities.
Reduced Valuation Risk
Minimizes valuation disputes by prioritizing observable inputs and clearly separating market data from management assumptions.
Stronger Financial Reporting
Enhances the reliability of balance sheets, disclosures, and impairment assessments used by auditors, investors, and stakeholders.
Scalable Across Use Cases
Applicable to financial reporting, portfolio valuations, business combinations, impairment testing, and complex instruments.
ASC 820 vs 409A Valuations
While ASC 820 and 409A both involve fair value concepts, they serve different purposes and are applied in different financial and regulatory contexts.
ASC 820
Financial Reporting Fair Value
- Used for financial reporting under U.S. GAAP
- Measures fair value of assets and liabilities
- Applies to portfolios, investments, and balance sheet items
- Focuses on market participant assumptions
- Required for audits and financial disclosures
409A
Tax & Equity Compensation Valuation
- Used for tax compliance and stock option pricing
- Determines fair market value (FMV) of common stock
- Applies to employee equity compensation plans
- Focuses on IRS safe harbor requirements
- Protects companies from tax penalties
Why Choose ZT Valuation for ASC 820?
ZT Valuation supports finance teams, CPA firms, and investment professionals with accurate, transparent, and audit-ready fair value measurements aligned with ASC 820 requirements.
Audit-Ready by Design
Every ASC 820 valuation includes clearly documented assumptions, methodologies, and supporting analysis designed to withstand audit scrutiny.
CPA & Advisor Friendly
Our reports align with auditor expectations and U.S. GAAP disclosure requirements, reducing review cycles and follow-up questions.
Market-Aligned Methodologies
Valuations leverage market participant assumptions, observable inputs, and accepted valuation approaches consistent with ASC 820 guidance.
Integrated Valuation Platform
Seamlessly connect ASC 820 valuations with cap table management, equity modeling, and 409A workflows in one unified system.
Consistent Valuations Across Periods
Maintain consistency in assumptions and methodology across reporting periods, improving comparability and governance.
Designed for Scale
Whether valuing a single asset or a complex portfolio, ZT Valuation scales to support growing organizations and investment structures.
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