Financial
Reporting Valuations
and ensuring compliance with accounting standards.
At Australian Valuations, we understand the critical role that Fair Value Accounting plays in ensuring transparent and compliant financial reporting. Our commitment to providing precise and robust valuations in strict accordance with both Australian and International accounting standards is at the core of our mission.
With extensive experience and understanding of the complex interplay between international and local standards, we stand ready to provide property, plant and equipment valuations that meet compliance requirements and empower you with insights into your organisation’s financial health.
Fair Value Accounting
In a landscape where precision matters, organisations must navigate the intricacies of Fair Value Accounting, particularly concerning property, plant, and equipment.
For those subject to compliance with the rigorous International Financial Reporting Standards (IFRS) or their Australian equivalent, Australian Accounting Standards (AASB), the concept of Fair Value is pivotal. This prescribed basis of value, governed by IFRS 13 – Fair Value Measurement and its Australian counterpart, AASB 113 – Fair Value Measurement, is the cornerstone of financial clarity and integrity.
In Australia, reporting entities have a dual responsibility: to align with the stringent Australian Accounting Standards and Interpretations as laid out by the Australian Accounting Standards Board (AASB) and, where applicable, to harmonise their practices with the meticulous requirements of the Corporations Act 2001.
Our Expertise
In a landscape where precision matters, organisations must navigate the intricacies of Fair Value Accounting, particularly concerning property, plant, and equipment.
For those subject to compliance with the rigorous International Financial Reporting Standards (IFRS) or their Australian equivalent, Australian Accounting Standards (AASB), the concept of Fair Value is pivotal. This prescribed basis of value, governed by IFRS 13 – Fair Value Measurement and its Australian counterpart, AASB 113 – Fair Value Measurement, is the cornerstone of financial clarity and integrity.
In Australia, reporting entities have a dual responsibility: to align with the stringent Australian Accounting Standards and Interpretations as laid out by the Australian Accounting Standards Board (AASB) and, where applicable, to harmonise their practices with the meticulous requirements of the Corporations
Act 2001.
Understanding
Fair Value
At its core, Fair Value is defined as follows:
“…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.”
This definition, enshrined in both the Australian Accounting Standards (AASB 13 – Fair Value Measurement) and the International Financial Reporting Standards (IFRS 13 – Fair Value Measurement), lays the groundwork for a fair, transparent, and market-based approach to asset valuation.
But what does Fair
Value really mean in practice?
But what does Fair Value really mean in practice?
Fair Value represents an asset’s estimated selling price under the conditions of an orderly and current market transaction. It’s not an arbitrary number but a reflection of the economic realities and dynamics of the market. Fair Value measurements don’t exist in a vacuum; it considers the interplay between supply and demand, buyer and seller, and the prevailing market conditions at a specific time.
Consider this: When you need to assess the market value of an asset, be it property, plant, machinery, or equipment, Property valuations don’t rely on guesswork or subjective judgments. Instead, it harnesses the power of the market itself. It asks, “What would a rational buyer pay for this asset in today’s market?”
This market-based approach ensures that Fair Value valuations are robust, objective, and rooted in reality. They provide a clear, verifiable, and impartial snapshot of an asset’s worth.
At Australian Valuations, we embody fair assessments in our approach to financial reporting valuations. Our team of dedicated professionals is well-versed in the intricacies of financial reporting property valuations under AASB 13 and IFRS 13. We combine the art and science of statutory valuations to provide accurate, reliable, and defensible assessments.
Our Financial Reporting
Valuation Approach
Fair Value Measurement
(AASB 13)
We assist companies in determining the fair value of their assets, liabilities, and financial instruments in accordance with AASB 13. Our expertise in the asset class and fair value hierarchy ensures compliance with relevant accounting standards.
Impairment Testing
(AASB 136)
Accurate valuations performed by our expert valuers experienced in financial reporting requirements are integral to impairment testing as required by AASB 136 Impairment of Assets. It provides companies with the methods and tools necessary to estimate the recoverable amount of their property, plant and equipment assets, ensuring they are accurately represented on the company’s balance sheet.
Business Combinations
(AASB 3)
When your company engages in mergers, acquisitions, or business combinations, we provide investment property valuation services to determine the fair value of identifiable plant and equipment assets, liabilities, and non-controlling interests, in accordance with AASB 3 Business Combinations.
Tax Valuations
Our team conducts valuations for tax and financial reporting purposes, helping you comply with Australian tax regulations and optimising your tax planning strategies.
Financial Reporting Support
We provide ongoing support and consultation to ensure that your financial statements accurately reflect the fair value of your assets and liabilities.
Contact Us for Accurate
Financial Reporting Valuations
Don’t leave your financial reporting valuations to chance. Choose Australian Valuations for precision, expertise, and peace of mind. Our dedicated team is ready to provide expert guidance and deliver valuations that add value to your business.
Get in touch with us today to discuss your valuation needs and receive a quote for a tailored solution!