Fair Value Measurement (IFRS 13) Valuation

The IFRS 13 standard defines fair value in financial reporting, sets out a framework for measuring it and clarifies factors that need to be considered in estimating it in accordance with IFRS standards.Private Equity and Venture Capital (PE and VC) Firms are required to value their portfolio companies at fair value in conformance with IFRS 13. 

Aranca’s portfolio valuation services help PE and VC clients comply with IFRS 13 provisions and avoid audit issues in their quarterly and annual reporting. Our rigorous valuation framework and processes are designed to make valuation of portfolio companies hassle free, time-bound and defensible to withstand audit review of highest standards, while still allowing PE partners enough flexibility to maintain objective control over the final reported numbers.

While the standard is aimed at making performance of private equity firms as reported in financial statements more comparable across the globe, it imposes considerable burden on partner’s time for dealing with valuation and audit issues.

Aranca offers two approaches for IFRS 13 compliance to suit client’s valuation requirements:
  • End-to-End Solution: Aranca will assume the responsibility of coordinating with private equity firm’s portfolio companies for collecting, compiling and reviewing the relevant information and developing key assumptions for delivering the draft valuation analysis for partner review. This approach requires minimal intervention and save huge amount of time for the partners.
  • Valuation Analysis: This is a cost effective option designed for especially for smaller PE and VC firms. They can collect and provide relevant information required for valuation from the portfolio companies, and engage Aranca to deliver a valuation analysis compliant with IFRS 13. 

Our engagement model for IFRS 13 is flexible and can be customized as per client's desire.

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Fair Value Measurement Valuation (IFRS 13)
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