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Valuations with a focus on impairment reviews

Description
Registration Time: 13.15
Session Time: 13.30 - 16.45 including a 15-minute coffee break 
Speaker: Mr. Michael Zarb
Venue: Lower Ground, Tower Training Centre, Swatar
 
Participation Fees 
MIA Members: €35.00
Non-MIA Members: €70.00
Retired Members: €15.00
Students: €20.00
 

Background Information

 

The impairment assessment of an asset represents a critical point in the financial reporting process of every business. In the absence of active markets for comparable assets, IAS 36 discusses alternative valuation principles to guide the user to assess whether an asset is impaired and quantify the potential impairment loss when this is necessary. The session will introduce the key building blocks for designing an impairment test, but will focus on assessing an asset’s recoverable amount through the use of discounted cash flow techniques, emphasising the practical application of the technique rather than the model’s theoretical underpinnings. Key discussion points will include identifying and defining cash generating units, estimating appropriate cash flow projections and the selection of an appropriate discount rate.

 

Objectives

 

Participants who are new to the topic and to valuations will be exposed to the overall process for undertaking an impairment test and will receive guidance on the practical application of discounted cash flow models, including reference to key data sources. More experienced participants will have the opportunity to obtain further guidance on key judgements points and to debate such matters with other professionals, thus deepening their understanding of the subject matter and instilling further confidence.

 

Topics on the agenda

This session will cover the following topics:

  • Brief overview of IAS36 and the definition of a Cash Generating Unit
  • The definition of recoverable amount (Value in use vs fair value less cost of disposal)
  • Overview of the DCF model
  • Estimating the value in use – Key components of expected cash flows
  • Estimating the value in use – Discount rate for valuation of assets
  • Estimating the Fair value less cost to sell through discounted cash flows technique
  • Overview of key differences between valuing a company versus valuing an asset
  • Overview of key differences value a company versus valuing an asset and differences between value in use and fair value less cost to sell

 

Target audience

This session will be useful to key management personnel involved in the impairment assessment of the assets, accountants responsible for auditing assets and students.

Audience

Auditors, accountants and lawyers

CPE Hours

3 hours Core

Speaker
Michael Zarb
Senior Manager
Deloitte Malta

Michael Zarb joined Deloitte in July 2017 as a Senior Manager in Financial Advisory Services. He is a qualified accountant and corporate finance professional with 12 years of experience. Prior to joining Deloitte, Michael led a specialist team focused upon valuations and economics in a competing firm. Throughout his career Michael has led various valuation assignments, ranging from valuing tangible and intangible assets for corporate reporting requirements, to valuing investments and derivatives for assisting funds produce regular NAV updates, or to assist in strategic decision making, M&A activity and for tax purposes. Michael is a Chartered Accountant (ICAEW) and holds a BA (hons) from the University of Leicester and an MSc from the London School of Economics.

8
May 2019

Valuations with a focus on impairment reviews

(M1947)

Organized By: The Malta Institute of Accountants
Type of Event: Seminar

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Date & Time
2019-05-08 13:30:00 2019-05-08 16:45:00 Europe/Malta Valuations with a focus on impairment reviews IAS 36 Impairment of assets requires entities to assess whether their assets have been subject to a durable loss in value, commonly referred to as an Impairment loss. The standard set out the framework to assess whether there are indications of impairment and provides useful guidelines to quantify such impairment losses. In line with the guidelines prescribed by IAS 36, this session will be mainly centred on the application of the discounted cash flows technique to estimate the value in use and the fair value less cost of disposal of an asset while paying greater attention to the estimation of an appropriate discount rate for the subject asset . The session will also address methodological differences between an assets’ “value in use” and its “fair value less cost of disposal”. Lower Ground, Tower Training Centre, Swatar, The Malta Institute of Accountants
Wed, 8 May 2019
13:30 - 16:45
Location
Lower Ground, Tower Training Centre, Swatar,
Cancellation Policy

Refer to Terms and Conditions.

Terms & Conditions
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