Over the last decade or so, the concept of fair value has gained tremendous importance in the financial fraternity. A disproportionate share of the value of an enterprise nowadays lies in intangible assets like brands, intellectual property, customer relationships, etc. rather than in tangible assets like plant and machinery or land. Often, fluctuations in the value of financial instruments held by an enterprise can significantly affect its overall market value. As a result, age old concepts like historical cost are losing their relevance in the context of financial reporting.
Today, financial regulators across the globe realize the importance of fair value in reporting the financial health of enterprises. As India moves towards IFRS, CFOs and controllers need to make sure that their financial statements present the assets and liabilities at fair value as opposed to historical cost. This is especially true in the case of business combinations. US GAAP and IFRS require companies to allocate the purchase price of an acquisition to the various assets of the acquired company and this allocation needs to be made at fair value. Several countries across the globe are adopting IFRS and India has also decided to align its accounting standards with IFRS with effect from 2011.
To assist CFOs and controllers take sound and well informed decisions, help them align their financial statements with the fair value of their assets and liabilities, and to help them comply with regulatory requirements, American Appraisal provides a wide range of financial valuation services. An indicative list is provided below:
- Purchase Price Allocation (IFRS/ US GAAP/ Indian GAAP/ Indian Income Tax)
- Impairment Testing (IFRS/ US GAAP/ Indian GAAP)
- Financial Instruments (IFRS/ US GAAP/ Indian GAAP)
- ESOP/ Share-based Payment (IFRS/ US GAAP/ Indian GAAP)
- Fair value estimation for other statutory/ regulatory purposes
- Valuation of business/ business segments for spin off/ restructuring
- Assessment of Merger swap ratio
- Controlling/ Minority stake valuation
- Private Equity portfolio valuation
- Investment Impairment testing for accounting purposes
To ensure accuracy and objectivity American Appraisal has limited its business interests to valuation and valuation-related advisory services. For that reason we are a truly unique resource.
Our reputation for impartiality is why our valuation opinions are relied upon by the world's most discerning regulatory, judicial and taxing authorities. Financial institutions, boards of directors and stockholders have sought American Appraisal's guidance for more than 110 years.