Accounting Valuations

International Accounting Standards and International Financial Reporting Standards (IFRS) introduce significant changes to the way in which accounts must be prepared and presented, requiring a wider range of assets to be valued on an annual basis.

• IFRS changes the accounting treatment for acquisitions. A purchase price allocation (“PPA”) is required whereby all assets (tangible and intangible) from a merger or acquisition now have to be included in the balance sheet of the acquirer at their current market value and are depreciated over their useful economic life.
• Goodwill is now tested for impairment annually, and is marked down for any impairments calculated during the annual review process.
• These considerable changes call for specialist valuation services that both understand the specific accounting implications and the wider commercial context in which those accounting valuations will apply.