Amendments in the accounting principles implemented in the last decade resulted in the emergence of valuations for the purposes of financial reporting, including fair value measurement (IFRS 13), purchase price allocation (IFRS 3) and impairment testing (IAS 36).Fair Value is required for Financial Reporting in accordance with Indian Accounting Standards (Ind AS) which converge closely to the International Financial Reporting Standards (IFRS). Ind AS 113 which is a dedicated standard on fair value, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Pursuant to IFRS 3, the entity acquiring control over a company must disclose all acquired assets and liabilities, including contingent liabilities, at their fair value, in the process called purchase price allocation. The acquirer must disclose not only the assets already recognised in the balance sheet of the acquired company, but also any identifiable intangible assets acquired in the course of the transaction, such as trademarks, customer and supplier relationships, know-how, technology or research and development projects, which must be measured at fair value for the first time.

Resurgent provides comprehensive assistance to its clients in the determination of fair value of enterprises, cash-generating units, separate assets and liabilities, as well as in the estimation of the goodwill. Before the closing of the transaction, it is also helpful to obtain a clearer picture of the acquired intangible assets and to assess how these values may affect the financial performance of the company, particularly with regards to the level of depreciation and net profit.

IAS 36 requires annual impairment tests of certain assets and, if necessary, recognition of write-offs of goodwill, tangible fixed assets or intangible assets. Our experts can perform valuations required for annual reviews and impairment tests of assets as well as estimate the impact of any impairment losses on the financial statements.The team is well versed in the accounting requirements underlying the need for financial valuations. We also clearly understand the intricacies and implications associated with the various accounting pronouncements underlying the need for detailed and documented value considerations.