Financial reporting valuations

Incwert provides valuations of goodwill, indefinite-lived intangibles and cash generating units for impairment testing purposes pursuant to International Accounting Standard 36 and Indian Accounting Standard (IndAS) 36

Incwert can help you address complex issues which may arise in context of IndAS 103 and IFRA 03. Purchase price allocation in a business combination is tricky and requires identification and fair valuation of assets, assumed liabilities followed by determination of useful life of such assets.

We can help you in the following ways:

- Pre-acquisition analysis of price and assessment of potential impact on earnings

- Acquisition date fair value measurement of consideration transferred, any previously-held equity interests and any remaining non-controlling interests

- Fair valuation of tangible assets and identified intangible assets

- Valuation of derivatives and other financial instruments and their subsequent mark-to-market analysis, when required

- Fair value measurement of assumed liabilities

Alternative asset valuations

Clause 23 of SEBI (Alternative Investment Funds) Regulations, 2012 requires the AIFs to provide to its investors, a description of its valuation procedure and of the methodology for valuing assets.

  • Category I and Category II AIFs are required to undertake valuation of their investments, atleast once in every six months (subject to extension of upto one year), by an independent valuer appointed by the AIF.
  • Category III AIFs are similarly required to independently calculate the net asset value (NAV) which must be disclosed to the investors at intervals not longer than a quarter for close ended funds and at intervals not longer than a month for open ended funds.

Since most venture capital-backed and private equity-backed portfolio companies are financed by a combination of different classes of equity, each of which provides its holders with unique rights, privileges, and preferences its vital to value the instruments fairly.

Derivatives and ESOPs / Stock based compensation

Our team specialises in developing quantitative valuation models for complex situations such as that of fair valuation of early-stage enterprises which have had recent round of funding.

We have experience in utilising evaluation techniques such as – Monte Carlo simulation, Binomial Lattice models, Black-Scholes formula and Back-solve.

We can assist you in fair valuing share-based payment transactions under IndAS 102.

Tax and Regulatory valuations

Indian Income tax laws stipulate the need for valuation in several situations. With team of professionals comprising mostly of individuals who are also chartered accountants, we are adept to help you deal with any of such requirements.

Similarly, Incwert can help in regulatory compliance valuations. Be it under Companies Act, 2013, FEMA or SEBI, we can offer skilled expertise and defend our valuation positions.

Fairness opinion

Incwert can deliver to you fairness opinions and capital adequacy opinions through its trusted associates ( category 1 merchant banks). We provide an objective opinion to buttress the fairness of the transaction value.

Tangible asset valuation

Where there is a need for valuation of tangible assets such as land, building, plant & machinery, we bring fair opinion to the table. Our experts who are chartered engineers can assist you with such appraisals