Using Fair Value in Financial Reporting

Apr 15 2009

Conrad Centennial Singapore

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The concepts of value and the use of fair value in financial reporting, with special focus on purchase price allocation (in a business combination) and impairment reviews will form the framework of this seminar.

Valuations have become increasingly important during the last few years, and fair values are most definitely here to stay! We work with them everyday. They are everywhere in a set of financial statements. However, do we know enough about how to determine them? What are the main inputs? What is driving fair values to go up or down?

When we think of valuations we typically think of business combinations and impairment. It is true that the M&A market has been booming in recent years and we have seen, and will continue to see, that impairments can have a significant impact on entities’ accounts.

However, valuation impacts most areas of the financial statements today. If we take the last ten years, we see that in the IFRS world the standards which require or permit the use of fair value have increased significantly.

In addition, the IASB Board has issued a discussion paper on a proposed fair value measurement standard based on FAS 157, which was issued by the FASB in 2006. So valuation has formally moved into the accounting world.

The workshop will discuss the concepts of valuation and the guidance we currently have on how to fair value assets or liabilities under IFRS / FRS today, as well as the practical problems we often face in determining fair value.

Programme Outline
To obtain an overview of Valuation for Financial Reporting

• Concepts
• Approaches
• Method

• Identification
• Valuation
• Goodwill

• Indicators
• Cash Generating Unit
• Recoverable amount

• Chief Financial Officers
• Financial controllers/managers
• Investment/M&A managers
• Accountants
• Financial/Market Analysts
• Auditors
• Audit Committee Members of Listed Companies