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Financial Reporting Valuation

BDO’s Valuations team has exceptional technical knowledge and deep experience in providing independent valuations for financial reporting purposes. Fair value financial reporting, in particular, is the new reality as most countries in the world are converging their accounting standards with existing IFRS. Whatever your fair value challenge, we have the expertise you need.

Below are just some of the areas we advise on.

Purchase Price Allocation (PPA) and Intangible Asset Valuation

Our experts have provided purchase price allocation services for IFRS 3, FRS 102 and ASC 805 business combination purposes for 1,000s of transactions, including complex, billion pound+ cross-border deals.

Their combined decades of experience with the PPA process mean that you will receive the most knowledgeable and efficient valuation advice – from the identification and valuation of intangible assets separable from goodwill through to the fair value of inventory, deferred revenue and property, plant and equipment.

We also provide ‘pre-completion’ valuation advice to acquirers on the potential accounting impact of the acquisition and offer an efficient, integrated M&A package comprising pre-deal due diligence and post-deal fair value reporting services.

Share-Based Payments

We help clients estimate the fair value of employee award and incentive grants for financial reporting purposes under IFRS 2, FRS 102 and ASC 718.   We are highly adept at modelling even the most complex of share schemes, so whether it requires Black-Scholes, binomial lattice or Monte Carlo simulation, we have the tools to assist.

Impairment Reviews

Our financial reporting valuation team assist clients with impairment reviews under IAS 36.  Our services range from a fully outsourced impairment review, comprising value in use and/or fair value calculations, through to advice on components of the calculations, such as an appropriate discount rate.

Lease Accounting

Pooling of leases sharing similar characteristics and determination of an incremental borrowing rate for each lease pool, in order to comply with IFRS 16, is a fast-growing service line for our valuation experts.  We analyse factors such as capital structure/credit rating; current secured lending (if any) and LTVs, in order to generate a credit ‘spread’ to apply to an underlying interest rate curve and hence an appropriate incremental borrowing rate specific to our client.

If you are in need of fair value advice in order to comply with your financial reporting obligations, touch with us.