Valuation and Fair Value Accounting

Introduction

Various categories of professionals need to carry out valuations to support business decisions. Among those are research analysts, investment bankers, auditors and accountants, corporate finance specialists, merger and acquisition analysts, venture capitalists, and individual investors. This course provides a sound theoretical framework for valuation of assets and entities and a practical guide to how valuations are actually done in the real world. It also provides a conseptual and practical introduction to fair value accounting ander IFRS.

Valuation skills are also required for understanding the concepts and procedures underlying generally accepted accounting principles used to prepare financial information.

Course content

1. Fundamental analysis – the process
2. The reformulation of the income statement and balance sheet
3. Forecasting.
4. Introduction to industry and company analysis.
5. Cost of capital
6. Valuation techniques
   • Discounted dividend valuation
   • DCF valuation
   • Relative valuation
7. Acquisition analysis
8. Fair value accounting in IFRS, e.g.
   • Fair value measurement – IFRS 13
   • Purchase price allocation - IFRS 3
   • Revaluation of PP&E – IAS 16
   • Measurement of recoverable amounts – IAS 36
   • Financial instruments - IFRS 9 and IAS 32
   • Fair value for non-financial assets - IAS 40 & 41