Valuation and Fair Value Accounting
Valuation is an important task for research analysts, investment bankers, auditors and accountants, corporate finance specialists, merger and acquisition analysts, venture capitalists, and individual investors. This course provides both a sound theoretical framework for valuation and a thorough discussion of how valuations are actually done in the real world.
Development of valuation skills entails understanding the concepts and procedures underlying generally accepted accounting principles used to prepare financial information.
1. Fundamental analysis – the process
2. The reformulation of the income statement and balance sheet
4. Introduction to industry and company analysis.
5. Cost of capital
6. Valuation techniques
Discounted dividend valuation
7. Acquisition analysis
8. Valuation in accounting
Fair value measurement – IFRS 13
Revaluation of PP&E – IAS 16
Measurement of recoverable amounts – IAS 36
Investment property – IAS 40
Biological assets – IAS 41
9 Auditing fair value estimates – ISA 540
Learning outcome knowledge
The objective of the course is twofold. First, students shall acquire general knowledge about techniques to estimate the market value of assets and businesses (valuation methods). Second, they shall learn about the topics for which firms are required to report the fair value of balance sheet items and learn how to apply the valuation methods for that purpose.
- Written assignment: 30%
- Written exam: 70%