Para 79 of IND AS 40 – Investment Property requires a Company following IND AS to disclose the fair value of the investment property.

Our investment property valuation services comply with IND AS 40, ensuring that your investment properties (Land and Building) are accurately valued for financial reporting purposes. We utilize a systematic approach that considers various factors, including location, market trends, and property condition. Our team conducts thorough market research and analysis to provide you with a fair and reliable valuation of your investment properties. Choosing VNVA not only enhances your financial statements but also supports strategic decision-making regarding property acquisitions or disposals.

Valuation of Business and Purchase Price Allocation (IND AS 103)

IND AS 103 – Business Combinations requires following valuation exercises to account for a business acquisition :-

• Fair valuation of the identifiable assets and liabilities acquired
• Fair valuation of the consideration transferred which may be the fair value of the equity transferred or equity acquired in case of an all equity deal
• Determination of the resulting goodwill or capital reserve (in case of Bargain Purchase)

When it comes to mergers, acquisitions, or business combinations, accurate valuation is essential. Our valuation of business and purchase price allocation services adhere to IND AS 103, ensuring that you have a clear understanding of the fair value of acquired assets and liabilities. VNVA FinAdvisory employs a comprehensive approach, assessing both tangible and intangible assets to determine their fair market value. We assist in allocating the purchase price effectively, which is crucial for accurate financial reporting. By leveraging our expertise, you can navigate complex transactions with confidence, ensuring compliance and maximizing the value of your investments.

Para 9 and 10 of IND AS 36 requires an entity to assess at the end of each reporting period:-

• Existence of any indication that an asset (tangible or intangible) may be impaired
• Any impairment in the value of an intangible assets with indefinite useful life for e.g. Brand.
• Any impairment in the value of goodwill

In case the asset is not capable of generating cash flows independently, then the exercise is required for a CGU to which the asset belongs.

Impairment assessment includes determination of the recoverable value / fair value of the asset.

At VNVA FinAdvisory, we offer specialized services for impairment assessment and valuation of goodwill, brand and other tangible and intangible assets in accordance with IND AS 36. Our experienced team conducts thorough analyses to determine the recoverable amount of these intangible assets, identifying any potential impairment. We consider various factors, including market conditions and future cash flows, to provide you with a precise valuation. This assessment not only helps in compliance with accounting standards but also aids in strategic planning and investment decisions, ensuring that your business’s assets are accurately reflected on your balance sheet.

Para 10 of IND AS 102 requires an entity to value the goods or services received against share based payments with reference to the fair value of equity instruments granted.

This rule is also applicable to the assessment of employee benefit expenses in a case where the employees are granted ESOPs.

At VNVA, our expert team assesses the value of ESOPs by considering various factors like the current value of the shares, business projections for the term of ESOPs, probability assessments of various variables involved in valuation, exercise price, vesting period etc. The assessment helps in ensuring a true and fair view of the financials giving an accurate picture of the expenses incurred or assets acquired in exchange of shares.

We can also provide valuable guidance and advisory in designing the ESOPs schemes for employees considering the periodic PnL impact and compliance with reporting standards.

There are several other valuations where we may add value to an organisation like :-

• Valuation of Inventories as per IND AS 2
• Fair valuation of Non-current assets held for sale as per IND AS 105
• Several valuation required under Income Tax Act, 1961