July 03, 2017

Not that long ago, the annual financial statements were used as the main ingredient in conducting a valuation of the company. While that is still relevant, nowadays a variety of valuations need to be done in order to prepare our financial statements. In other words, the valuation has become the means to preparing sound financial statements.

Whether you use IFRS, Dutch GAAP or US GAAP as your reporting standard, you are dealing with increasing reporting complexity.  Sooner or later, you are encountering fair value issues for which you need some kind of valuation to be done.

CFG can help you to resolve these valuation reporting issues. We have a team of certified public accountants and certified valuators, holding credentials representing high quality standards. With over 20 years of combined experience in working with financial institutions and privately held companies of all types, CFG has the ability to combining technical expertise, industry knowledge and innovative approaches to help clients resolve fair value reporting issues successfully.

Which Financial Reporting Valuation services can CFG provide?

We have the capability to serve the full range of fair value valuation needs, providing valuation opinions that satisfy the requirements of auditors and regulators. Some examples of Financial Reporting Valuations are

Valuation of Unlisted Securities (privately held companies)
Historically, many companies have carried unlisted securities on their balance sheets at cost. Going forward, such instruments may need to be fair valued for financial reporting purposes, how challenging this may be. We help our clients develop a systematic and efficient approach to the valuation of portfolios of unlisted securities, which, when applied consistently and with sufficient rigor, results in robust valuations, time after time.

CFG also provides portfolio valuation services for funds, private equity firms and insurance companies. Independent estimates enhance the confidence of all parties in the reasonableness of overall portfolio valuation of illiquid assets. These estimates also help assure compliance with a fund’s applicable accounting standards, including IFRS 13 Fair Value Concepts.

Intangible Assets
CFG provides independent valuation opinions on the fair value of intellectual property and other intangible assets acquired in business combinations (as required under IFRS 3 for instance). We estimate the fair value of the following intangible assets on a regular basis: customer contracts, franchise agreements, licensing agreements etc.

Tangible Assets
For entities acquiring land and buildings in a business combination or that hold investment properties and adopt the fair value model, our valuation team has strong knowledge of the regional real estate market and extensive real estate valuation experience across a range of other asset types.

Impairment Testing
Changing economic conditions and market volatility can impact the value of a company’s assets across the balance sheet. As a result, companies are often faced with challenging decisions related to the measuring and reporting of impairment charges. We offer a combination of valuation and accounting expertise to help you determine your approach to the impairment testing of goodwill, indefinite-lived intangible assets, long-lived tangible and intangible assets, and other assets.

Performing and Non-Performing Loans
We help investors to evaluate loan and receivable portfolios through loan file and borrower due diligence and portfolio valuation.

Valuation upon IFRS Adoption
First time adopters of IFRS have certain choices that may result in the need for a fair value measurement. We can assist entities that wish to use the fair value of certain assets such as property, plant and equipment, investment properties or intangible assets as deemed cost on transition.

Please contact us with any question you may have with regard to financial reporting valuations. We are glad to help!

Written by: drs Walter Blijleven RA, CVA