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 3 has had a significant impact on the way we account for acquisitions, requiring the application of the acquisition method for each business combination. A key element of the acquisition method is that it requires that recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. All assets (tangible and intangible) from a merger or acquisition therefore have to be included in the balance sheet of the acquirer at fair value and are depreciated over their useful economic life.
  • Goodwill has to be allocated to cash generating units, and must be tested for impairment annually.

Issues around the risk of impairment and the impact of IFRS 3 on earnings per share calls for specialist valuation services that both understand the specific accounting implications and the wider commercial context in which those financial reporting valuations will apply.

PwC's valuation services draw on considerable technical and financial specialisation available in the valuation team and we are able to access PwC's accounting specialists to deliver integrated advice to our clients.

PwC is able to combine specialist valuation expertise with deep accounting knowledge to provide robust valuation advice covering all the angles.

Contact us

Jan Groenewald
Partner, PwC South Africa
Tel: +27 (0)11 797 5380
Email

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