Appraisal for IFRS Purposes

At present, more and more companies draw up reports in accordance with International Financial Reporting Standards therefore some aspects of transformation of Financial Statements become very pressing.

 

Valuation of corporate assets is a very important stage of the transformation of financial statements in accordance with IFRS because:

IFRS requires that the assets shall be recorded according to their fair market value;

an independent appraiser is needed in the majority of cases to determine a fair market value of the assets.

 

According to the results of 2008, the Company was placed among the top ten appraisal companies based on the revaluation of assets and fixed assets including those revaluated for IFRS purposes.

 

When is valuation for IFRS purposes needed?

Valuation for IFRS 1 purposes - First-time Adoption of International Financial Reporting Standards

The valuation is made in order to post the fair value of fixed assets of a company making its first statement in accordance with IFRS requirements with a view to cover adequately a financial status of the entity. Generally, what is meant here is the valuation of fixed funds and incomplete facilities owned by the Company, and, in some instances, the valuation of intangible assets.

Valuation for IFRS 3 purposes - Business Combinations

The key goal of the valuation is a correct recording of a company's purchase cost in the balance sheet of an acquiring company (purchase price allocation procedure). With this aim in view, a valuation of tangible assets and liabilities of the target company is carried out, intangible assets are identified and their cost is estimated, with the identification and valuation of intangible assets being the most important working stage.

Valuation for IAS 36 purposes - Impairment of Assets

The valuation is carried out with a view to determine the amount of impairment of a specific asset or the Company's business as a whole in case of worsening of economic conditions.

Valuation for IAS 16 purposes - Property, Plant and Equipment

In some instances, International Accounting Standards require an annual revaluation of corporate fixed assets by contracting an independent appraiser.

Valuation for IAS 38 purposes - Intangible Assets

The valuation is carried out for justified accounting treatment of corporate intangible assets in accordance with IFRS requirements.

Valuation for IAS 39 purposes - Financial Instruments

The valuation is carried out for justified accounting treatment of corporate financial investments in accordance with IFRS requirements.

Valuation for IAS 40 purposes - Investment Property

International Accounting Standards require an annual revaluation of the items of property designed for investment purposes.

 

Valuation of IFRS purposes is one of the sectoral practices of our company.

The Company offers all kinds of appraisal services for IFRS purposes.

 

What are the key features of valuation for IFRS purposes?

The valuation is carried out in accordance with International Appraisal Standards that set out strict requirements for methods and procedure of appraisal.

When carrying out valuation the Company applies Russian and international practical experience accrued by the international consulting network of Grant Thornton International. At present, more than 30 highly skilled specialists are involved in IFRS projects. Their professionalism rests on the intimate knowledge of Russian business community and extensive experience in the area of appraisal.

There are three parties involved in the appraisal process: an appraiser, a client and an auditor to check accounts. The appraisal made by an appraiser is subject to repeated analyses both by the Client's and Auditor's specialists.

Our Company has a long-term positive experience of teamwork and cooperation with BIG 4 auditing firms in harmonizing reports prepared for IFRS purposes in different spheres of economy.