Valuations

The introduction of IFRS is forcing Aim companies to use what would, until recently, have been considered esoteric valuation techniques in a growing number of circumstances.

This has resulted in many companies seeking outside help to cope with the valuation requirements imposed upon them with the introduction of IFRS. Examples of this include IFRS 2 in respect of share options, and IFRS 3 in respect of intangible assets and business combinations.

Conflicts of interest may arise where an audit firm is asked to express a ‘true and fair' opinion on a subjective judgment of its own. This is why most material valuations cannot be carried out by your auditor.

At Smith & Williamson, we have a suite of option valuation models (including Binomial and Monte Carlo) devised in conjunction with Warwick Business School. These models assist in the management of employee options and long-term incentive plans with the most complex performance criteria.

We provide authoritative guidance on market rates of interest across all types of compound financial instruments. We work with both quoted and unquoted companies to provide relevant valuations of all types of intangible assets.

We appreciate that this is more than an academic exercise and that the presentation in your published accounts of the amortisation of intangible assets or the phasing of expenses will be as important as the valuation exercise itself.

We work in multi-disciplinary teams and will ensure that where judgment is required you will be made aware of the financial implications of relevant alternatives. We provide the comprehensive service required and ensure the process runs smoothly.

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For more information contact us.