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Valuation for IFRS and GAAP
More and more Russian companies close the accounts in accordance with International Financial Reporting Standards (IFRS) or standards of certain foreign countries (e.g. GAAP).
- If you are a manager who closes the accounts in accordance with IFRS or GAAP;
- If you are a consultant on financial reporting transformation;
- If you are an auditor checking such accounts.
Then Russian Valuation Service will be your reliable assistant!
What exactly do we offer?
RVS renders the whole range of valuation services for the purposes of IFRS:
- Valuation of organization’s fixed assets for first-time adoption of IFRS (in accordance with IAS-16 and IFRS-1);
- Purchase Price Allocation in accordance with IFRS-3;
- Valuation of certain types of assets in organizations which maintain records using fair value in accordance with IAS-17, IAS-38, IAS-39, IAS-40, IAS-41, IFRS-5;
- Estimation of impairment (in accordance with IAS-36).
Why the technologies and quality of valuation are so important?
Valuation of assets for the purposes of closing the accounts in accordance with IFRS, perhaps, the most technologically sophisticated type of valuation.
This is caused by, at the minimum, three factors:
- Firstly, the standards determines very strict validity of valuation opinions requirements without allowances for locale and null information;
- Secondly, the results of such valuations are subject to multiple analysis by both client and his auditor;
- And at last, thirdly, organizations which maintain records in accordance with IFRS are the biggest companies with complex business structure, often widely diversified both in industry and territorial way.
Our experience in valuation for IFRS procedures
Although Russian Valuation Services itself was organized only at the end of 2008, RVS’ key specialists render such services for more than 6 years. During this time more than 120 projects were completed by them. Among them there are large-scale projects such as valuation of fixed assets of JSC Russian Railways, JSC United Aircraft Corporation, valuation of assets acquired by JSC Objedinennye Mashinostroitelnye Zavody (Uralmash-Izhora Group), JSC Novolipetsk Steel (NLMK) and OJSC «Globalstroy-Engineering».
We have experience of performing such projects in different economic sectors:
- Engineering industry;
- Metallurgy;
- Mining industry;
- Transport;
- Construction;
- Telecommunication;
- Mass media;
- Financial Institutes;
- Commerce.
How to choose the appraiser for IFRS procedures correctly?
- If you are a manager who closes the accounts in accordance with IFRS or GAAP:
Consider an advice of your auditing manager. Perhaps, he (or she) will offer you several valuation companies with greater experience in valuation for IFRS procedures to choose from. It’s also important because auditor’s costs on valuation report verification could unexpectedly be more significant for you in case of low quality of a valuation report. Talk to valuation company’s manager, find out his personal experience and reputation. Because in the last analysis all you need is accepted by an auditor report of good quality with correct numbers.
- If you are a consultant on financial reporting transformation:
Speed and successfulness of concordance of report with a client and it’s verification by an auditor won’t also be indifferent for you. Certainly you know that an auditor is unable to perform valuation of assets of it’s client by itself due to conflict of interests.
- If you are an auditor checking such accounts:
You faced such situations many times. Probably, there is a valuation department in your company, which can recommend you a reliable appraiser. Suggest to your client how to organize cooperation of parties in this process better in order to avoid the threats of loss of independence and make the course of project faster and more successful.
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