Washington, D.C. (PRWEB) July 15, 2015
As a tool for investors, financiers, project developers and others, the Solar Energy Industries Association (SEIA) and CohnReznick, a leading national accounting, tax and advisory firm, today released a guide to the valuation of solar projects for financial reporting purposes. The publication features best practices in “an increasingly complex solar marketplace” and follows up on a 2014 publication by the two organizations on fair market value methodologies in the solar industry.
“This white paper provides all members of the solar industry with an overview of best practices in purchase price allocations for the acquisition of typical solar energy systems,” explained Don Nimey, Partner for CohnReznick’s Valuation Advisory Services Group. “Proper purchase price allocation reporting is fundamental to recording the intangible and tangible assets on the balance sheet of the acquirer.”
As the fastest growing energy sector in the United States, the solar industry continues to rapidly evolve, and industry participants are increasingly involved in mergers and acquisitions. These transactions often create complexities for financial reporting purposes and present the need for greater education around proper valuation of acquired solar projects, according to SEIA and CohnReznick.
"Our goal is to provide the solar industry with the best and most up-to-date information possible on important topics,” said Rhone Resch, SEIA president & CEO. “As solar deals grow more sophisticated, SEIA and its member companies are here to help untangle some of the financial mysteries.”
“As the industry’s M&A activity continues to increase so rapidly, it is paramount that investors and all parties in a transaction understand how to properly account for these acquisitions and the impact on their financial statements. We are pleased to work with SEIA and our fellow membership base to provide guidance on sound valuation reporting,” said Anton Cohen, Co-National Director of CohnReznick’s Renewable Energy Practice, and SEIA Board Member.
For more information and to download a copy of the guide, visit http://www.seia.org/research-resources/purchase-price-allocations-solar-energy-systems-financial-reporting-purposes.