The increasing use of fair value measurement in financial reporting has raised the profile of valuations from the perspective of management, shareholders, external auditors, standard setters and regulators.
We have an experienced team of valuation professionals who specialise in valuations for financial reporting purposes using a range of valuation approaches and methodologies tailored to the specific circumstances of the valuation subject, whether it is equity, an asset or group of assets, a liability or a contingent liability.
Our team is able to undertake financial reporting valuations in compliance with a range of accounting standards, including the relevant Japanese GAAP, US GAAP and IFRS. We have extensive experience undertaking financial reporting valuations in relation to domestic and cross-border transactions.
To structure and communicate a transaction effectively and facilitate more informed decision-making by an acquiror’s board of directors, the acquiror should obtain a thorough understanding of the intangible assets being acquired and the potential impact of purchase accounting on post-deal earnings prior to the completion of a deal. Companies will be better positioned to assess the accretive or dilutive impact of a deal if a robust pre-acquisition purchase price allocation is performed during the due diligence phase of the transaction.
By integrating PwC valuation specialists into the diligence team, not only can acquirors mitigate the risk of earnings surprises, but the output of a pre-acquisition purchase price allocation can facilitate a more robust transaction valuation analysis and can easily be converted into the post-deal analysis required for financial reporting.
Increasingly complex accounting standards for reporting M&A transactions have introduced the potential for greater earnings volatility. As financial reporting moves to a fair value model, understanding financial reporting requirements and how your decisions may impact future earnings is more important than ever.
We combine valuation and accounting expertise to help you better manage the challenges of executing a deal and comply with business combinations accounting standards. Our professionals provide you with the valuation assistance and accounting guidance needed to determine your newly merged company’s opening balance sheet. We help you understand the impact on earnings and provide you with real-time advice throughout the deal process.
We have the ability to fair value most of the assets acquired and liabilities assumed in a business combination, including both tangible and intangible assets. Our valuation specialists, working alongside accounting, tax and industry specialists if necessary, have a deep understanding of the relevant reporting and regulatory requirements, and can manage the whole process, ensuring valuations are robust and meet the requirements of your auditors.
Volatile financial markets and shifting economic conditions can impact the value of a company’s assets across the balance sheet. As a result, companies are often faced with challenging decisions related to the measuring and reporting of impairment charges - inappropriate decisions can prompt unwanted scrutiny from investors, regulators and other stakeholders.
We offer a combination of valuation and accounting expertise to help you determine your approach to the impairment testing of goodwill, indefinite-lived intangible assets, long-lived tangible and intangible assets, and other assets.
We can undertake impairment tests or independently review your impairment models to help you anticipate and meet the needs of auditors, lenders, regulators and other stakeholders, and better communicate issues regarding impairment throughout the executive levels of your organization.
We also support our clients in the following areas: