We prepare these valuations for CFOs and finance teams, applying the definitions the standards impose and documenting them for audit review. An external valuation is not mandatory in every case, but it is often the most efficient way to give auditors the evidence they need.
Situations
When UAE clients ask for this valuation
- 1You have acquired a business and must allocate the purchase price under IFRS 3.
- 2Goodwill or other assets must be tested for impairment under IAS 36.
- 3Unlisted investments are measured at fair value under IFRS 9 and IFRS 13.
- 4Share options or awards must be measured under IFRS 2.
Who asks us
Typical clients
- CFOs and financial controllers
- Group finance teams
- Investment holding companies
What we value
The subject of the valuation
Businesses, cash-generating units, intangible assets, unlisted equity and share-based awards, as required by the relevant standard.
Our method
How we reach the figure
Each standard defines the value required. Fair value under IFRS 13 is an exit price from the perspective of market participants; value in use under IAS 36 reflects the entity's own expected cash flows. Applying the right definition matters as much as the technique.
| Income | Cash flow models for intangibles and cash-generating units | Usual starting point |
|---|---|---|
| Market | Comparable data, where reliable | Cross-check |
| Option | Option pricing for complex equity | Where relevant |
The standard defines the value required before any technique is chosen.
Value drivers
Points that move the value
- The standard
- Which IFRS applies and the value it defines.
- Market participant view
- Assumptions a buyer in the market would make.
- Audit evidence
- Documentation the auditor will need to review.
Documents
What we will ask you for
- Financial statements and budgets
- Transaction documents for acquisitions
- Prior-year valuation work and auditor comments
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A report structured around the standard's requirements, with schedules for the accounts.
Management is responsible for the financial statements and the assumptions adopted in them; the auditor forms its own view. Our valuation supports management's assessment and is prepared so the auditor can review it.
Timing
Planned around the reporting timetable and audit fieldwork.
Compare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Is a financial reporting value the same as a tax value?
- No. Accounting standards and tax law define value differently, and the same asset can carry different values for each.
- Can you work directly with our auditors?
- Yes, with your agreement. We answer audit queries on our valuation.