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Valuation is the process of determining the current worth of an asset or business. However, valuations also perform to settle the litigations and disputes and some Valuations are performed due to statutory obligations. There are some techniques that can be used to determine value, some of the techniques are subjective and others are objective. Subjective Technique: Judgement of contribution of a management is a subjective valuation technique. Objective Technique: Calculating intrinsic value based on future earnings would be an objective valuation technique.

There are some adjustments that may be considered in valuation. That are may be:

  • Excess or restricted cash
  • Non-recurring costs
  • Non-operating assets and liabilities
  • Non-operating income/expense items
  • Premium or lack of control discount
  • Above- or below-market leases
  • Deferred capital expenditures
  • Cost of goods sold adjustment
  • Working capital adjustment

WHY ACCOUNTING FORTE? Our qualified experienced professionals have experience in wide range of valuation issues Different experienced valuations by our team are:

  • Corporate and business valuation
  • Intangible assets & financial instruments valuation
  • Valuation of PPA for accounting for business combinations
  • Valuation for litigation and disputes

SARBENS-OXLEY is about documentation, internal audits, financial reporting and corporate governance. This requires a technological underpinning that facilitates integration, collaboration, reporting and monitoring. SOX is also known as 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act'. The main effect of SOX is to move the ultimate accuracy of financial reports from the outside auditor to the company's management. It is the company's responsibility to prove that internal controls are working effectively and actually exist.

Need for Valuation of corporate and business depends upon the transactions that occurring in the organisation. Finding a value for a business is an essential component of effective management (managed work). There are different context on which the valuation of business clearly depends. The different contexts may include the following:

  • Nature of business (Type of Company / limited liability partnership / partnership)
  • Target for valuation (Acquisition)
  • Status of business (Distressed / good)

How much is the business worth?
It is very hard to evaluate any business. However, there are different methods to evaluate the business like: financial statement based method, mixed method, etc. Our team of experts and valuation executives performed valuations on considering many aspects and factors, which are crucial in the valuation process. However, we also use some of the keywords to evaluate the business like value, price, cash flow, equity, etc.

Intangible asset is all about the untouchable things that generate the value of business to achieve the target of the business. Intangible assets include brand name, goodwill, copyright, etc. The future value of intangible assets is usually uncertain. On an average more than 88%of the company disclosed less than 1% of their intangible in their financial statements, on the other hand not even 1% of the companies disclosed more than 25% of their intangible values on financial reports.

Likewise, Financial Instrument Valuations also involves deep analysis of markets and the past trends. Valuation of Financial Instruments includes valuation of any document that has a monetary value or represents a legally enforceable agreement between two or more parties regarding a right of payment of money. These instruments may consist of Check, Draft, Bond, Share, Bills of exchange, etc. We, the accounting forte, try our best to grow awareness in our clients to disclose all the intangible assets and the exact value of Financial Instruments in the financial reports. All such valuations is done by our team which also consider the risk associated with such instruments and the future prospects of the markets.

PPA stands for purchase price allocation. Accounting for Valuation of PPA is commonly used in the case of joining of two or more than two businesses. The case may be termed as merger, acquisition, amalgamation, or business combination, etc.

Valuation of PPA is required by all the international boards of accounting, like International Accounting Standard Board (IASB), International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles of United States (US GAAP) for all acquisitions. ASC-820 and IFRS 13 defines “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.”

PPA is a complex, technical and organizationally challenging process. The basic needs that are required to value PPA are Skill, Expertise and Experience to correctly interpret and apply. PPA can be performed for financial reporting and/or tax reporting purposes, under US GAAP, IFRS and numerous nation standards.

Now a day it is very common to have litigation and disputes in any business. Litigation is the case that may be aroused due to different reasons. Disputes are usually raised by the litigation.

The environment is getting more integrated and regulated every day. Everyone needs to protect themselves against any violation of their rights. This environment requires highly skilled consulting professionals. Having a qualified and experienced expert testifying can be a significant strategic advantage. The Business Valuation in Litigation needs to enhance litigation skills for business valuation.

The team of the Accounting forte is having the knowledge to provide strategic and investigative valuation-related litigation to the clients. Accounting forte provide objective expert testimony in disputes and litigation. We help make our clients successful by providing independent valuations and fairness opinions in respect of business interests.
We provide various valuation services such as damage quantification, pre-litigation and litigation consultation, etc. in different areas such as:

  • Bankruptcy and restructuring
  • Fairness and solvency
  • Construction
  • Intellectual property litigation and licensing
  • Breach of contract and transactional disputes
  • Shareholder disputes
  • Divorce/family law
  • Lender liability
  • Class action
  • Tax-related litigations
  • Condemnation
  • Insurance

"Don't Wait. The Time Will Never Be Just Right" - Napoleon Hill

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