Derivatives and Financial Instrument Valuation

Financial Reporting under US GAAP often requires reporting financial instruments, or embedded components of financial instruments or other agreements, at fair value in the issuers' financial statements.  Often times, simplified valuation methods such as Black-Scholes, are not sufficient to estimate the fair value of complex financial instruments. D. Brooks and Associates CPAs specializes in developing customized models using Monte Carlo simulations, option pricing methods (OPM) and probability expected return method (PWERM) to value all types of financial instruments including convertible debt, preferred stock, market vesting stock compensation, and many other debt and equity  related arrangements.