Practical Application of Fair Value in Financial Reporting ( Incorporating the Key Covid Considerations )

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Description

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With the pervasive use of current cost measurement (e.g. fair value and value in use) in financial reporting, fair value accounting is often under-estimated. Hence, it is important for preparers and auditors of financial statements to have a strong grasp of how fair value is measured.

Practical cases will be used to provide participants with the opportunity to apply various valuation approaches and methods to different types of assets including businesses, financial instruments and intangible assets. In addition to covering fair value measurement under FRS 113, the trainer will also share real life experiences and challenges in applying fair value accounting in financial reporting.

Programme Outline

Relevance of fair value in FRS

• Business combinations
• Financial instruments
• Share-based payments
• Investment properties
• Agriculture
• Non-current assets held for sale
• Leases

Fair Value Measurement Framework

• Unit of account
• Valuation premise (including highest and best use)
• Markets for basis of valuation
• Valuation approaches (namely market, income and cost approach) and techniques
• Fair value (premiums and discounts)

Fair Valuing Unquoted Equity and Debt Investments

• Classification and measurement of unquoted equity investments
• Market approach methods
• Sources of data
• Key steps in Guideline Publicly-Traded Comparable Method
• Identify relevant comparables
• Identify key valuation metrics
• Perform comparative analysis
• Adjustments to valuation metrics

Fair Valuing Intangible Assets

• Overview of a business combination
• Types of intangible assets
• Valuation methods commonly used for intangible assets
• Key steps in Relief-from-Royalty Method
• Determining an appropriate discount rate
• Consideration of economic life
• Tax amortization benefit (TAB)

Participants are encouraged to bring along their financial calculators or laptops with Excel installed.

This workshop qualifies for 7.0 CPE hours in Financial Reporting Standards and Pronouncements (Category 1)

What you will learn

At the end of this workshop, you will:

• Be able to identify what needs to be fair valued and when it should be done.
• Learn how to apply valuation methods to different classes of assets like financial instruments and intangible assets.
• Understand the challenges and common pitfalls of fair valuation, and how to overcome them.

Target Audience

Accountants, Auditors, Finance Professionals and anyone interested in the practical application of fair value in financial reporting.

Expert Speaker

Ong Woon Pheng

Woon Pheng is a Chartered Accountant of Singapore (CA Singapore), Fellow Member of Association of Chartered Certified Accountants (FCCA), Chartered Financial Analyst (CFA), Chartered Valuer & Appraiser (CVA), International Certified Valuation Specialist (ICVS), Certified Fraud Examiner (CFE) and Accredited Tax Practitioner (ATP Income Tax).

Woon Pheng specialises in business valuation, valuation for FRS (including purchase price allocation, impairment review and valuation of intangible assets and financial instruments), financial and tax due diligence, divestment of business, mergers and acquisitions (M&A), fraud investigation, assessment of damages, expert witness and liquidation.

In addition to his various roles in the Singapore CA Qualification, Woon Pheng is also an adjunct faculty of Singapore University of Social Science ( SUSS ) where he teaches business valuation, financial reporting and corporate finance related subjects . In 2015, he was conferred the Teaching Merit Award by SUSS. He serves as a member in ISCA’s Investigation and Disciplinary Panel and the ACCA Singapore Professional Expert Forum. He is also a regular speaker on Business Valuation in various conferences.