Seminar "Fair value measurement"
On 15 March 2013 Deloitte held its second open seminar dedicated to the new IFRS 13 “Fair value measurement” accounting standards.
We invited our valuation specialist Taras Trokhymenko, Senior Manager in the Valuation Department at Deloitte, to speak at the event, since the main objective of IFRS 13 is to outline the principles and methods used to determine fair value. Happily, it seems we made the right decision!
The principles underlying the determination of fair value are very similar to the international valuation standards. Therefore, without an adequate understanding of the latter, it would be impossible to explain the nature of certain requirements contained in IFRS 13.
Just imagine how you would go about explaining methods of calculating the weighted average cost of capital if you had never done it before. Do you have to explain the concept of “terminal value” and its application? Why, in practice (despite the absence of standard requirements to apply one valuation method or a combination of different methods), is the fair value of most non-financial assets determined mainly by reconciling the results of different valuation methods? How would you explain what kinds of input data should be used for trademark assessment using the discounted cash flow method? These issues, and many more, needed to be addressed to our valuation specialist, and we ensured just that.
We are confident that, by gaining a deeper understanding of the valuation process and methods involved, we will be able to better understand the requirements set out in IFRS 13 and to find a common language for dialogue between financial specialists and valuation experts.
The seminar materials can be found here (Ukrainian).