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Advisory Services

Fair Value Measurements in Financial Reporting

During the past few years a move towards fair value accounting has taken place, mainly led by provisions of IFRS and US GAAP.  With the use of fair value, financial reporting becomes even more complex as there are few assets and liabilities where a market value can't be readily established.  Instead, companies and their auditors need to rely on valuation models that involve the application of methods and assumptions that can be highly judgmental.

As fair value has become more and more important as a measurement standard for financial reporting purposes, it becomes increasingly important for auditors to understand the dynamics of fair value measurement and have access to relevant expertise and resources.

Deloitte member firm valuation practitioners provide support to audit engagement teams in connection with procedures related to testing fair value measurements that may include:

  • business interests
  • intangible assets
  • share options
  • business combinations
  • financial instruments including:
    • convertible bonds
    • swaps
    • guarantees
    • mortgage-backed securities
    • asset-backed securities
    • collateralised debt/bond obligations.

Transaction Advisory

Whether evaluation strategic alternatives, acquisitions, or new ventures, Deloitte can provide in-depth advice to clients in their decision making.  Drawing on extensive experience across a broad range of industries, specialised practitioners can provide perspectives on value as well as assistance in interpreting the impact on transaction structuring, deal making and risk management strategies.  Clients can then focus their resources on those factors with the greatest impact on value to make the most efficient use of resources and achieve speed and efficiency throughout the transaction process.

Fund Portfolio Valuation

Many private equity, venture capital or hedge funds require independent valuation of portfolio investments for financial reporting purposes.  We can estimate the fair value of investments in accordance with IFRS, USGAAP or other national accounting requirements and industry guidelines such as the International Private Equity and Venture Capital Valuation Guidelines and the Private Equity Industry Guideline Group's US Private Equity Valuation Guidelines.  Alternatively, we can analyse and report on the reasonableness of management's internal fair value estimates.  

Bankruptcy and Financial Restructurings

Valuation services involving bankruptcy, financial restructurings, or financially distressed entities are provided to companies experiencing financial stress or involved in bankruptcy or creditor-imposed remedial measures as well as to their creditors or lenders.  This includes situations in which the services are provided when remedial measures are reasonably likely, pending, or actively underway.

Dispute Resolution and Litigation

Dispute resolution and litigation services include the provision of valuation services to entities for purposes related to a broad category of situations involving disputes, controversy, litigation, arbitration, mediation, or dispute resolution procedures whether the situation giving rise to the controversy or the sources of the conflict or dispute are reasonably likely, pending, or active matters.

Model Design and Risk Assessment for Financial Instruments

With volatile markets, complex financial structured products and increasing regulation, there is a growing need for accurate and reliable financial modelling and effective risk management models and systems.  Deloitte can assist with your quantitative valuation and risk modelling needs, including model design and independent risk assessment against the latest industry benchmarks and regulations.

Capital Allocation

Allocation capital across diverse business units with competing projects in an ever-changing business environment is a challenge.  Deloitte member firms can assist companies in developing investment policies and implementing an efficient capital allocation process that provides the structure and discipline for efficient decision making.  With an increasing array of analytical options, from discounted cash flow to probabilistic modelling and real options valuation, clients can be assisted in designing and approach best suited for their organization and capital decisions.

Tax Planning Strategies and Compliance

Deloitte member firm professionals provide clients with independent valuations that support tax service offerings for planning and compliance on a worldwide basis.  These services help analyze and support various tax situations.  Member firm practitioners are knowledgeable about the valuation requirements of each situation and have substantial experience supporting their valuations.  Additionally, they have the ability to leverage the experience of Deloitte member firms' tax specialists to provide clients with a full range of services.

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