Financial reporting valuations are technically demanding and time consuming. External support can ensure they stand up to auditor scrutiny.

Challenges you face around fair value accounting include gaining reliable and robust valuations for the financial reporting purposes such as:

  • purchase price allocations IFRS 3/FRS 102
  • impairment testing IAS 36
  • incremental borrowing rates IFRS 16
  • share-based payments IFRS 2/FRS 102.

Whatever the deal size, sector and geography, we'll help you meet your financial reporting requirements under IFRS and UK GAAP with speed and accuracy.

  • Robust technical accounting
  • Breadth of expertise
  • Partner-led approach
  • Robust technical accounting
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    Our financial reporting advisory team provides additional support and expertise on the technical accounting element of valuations.
  • Breadth of expertise
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    Our highly technical staff have you covered with specialisms across the different areas of financial reporting valuations.
  • Partner-led approach
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    Get direct interaction with decision-makers through our partner-led approach.

What is a purchase price allocation (PPA) and how can Grant Thornton help?

Watch this video to find out what a PPA is and discover how we can help you with the following PPA steps:

  • Determining whether the deal consideration requires valuation and which intangible and tangible assets will require valuation
  • Applying appropriate valuation methodologies
  • Meeting your reporting needs and liaising with your auditors

Why Grant Thornton

As a dedicated financial reporting valuations team, we take away the strain of highly technical and time-consuming financial reporting valuations.

We cover all aspects of valuations for financial reporting purposes under IFRS – including IFRS 2, IFRS 3, IFRS 13, IFRS 16, IAS 36 or IAS 38 – and UK GAAP.

We're large and truly global, executing more than 100 purchase price allocations each year.

We'll give you confidence in your financial reporting valuation as part of your audit.

Find further detail on these financial reporting valuation issues:

Purchase price allocations (PPA) IFRS 3/FRS 102

Valuation of acquired tangible and intangible assets, and liabilities assumed in a pre-deal and post-deal environment under IFRS 3/FRS 102.

Impairment testing IAS 36

Performing the annual impairment test of goodwill, intangibles and long-lived assets by determining the weighted average cost of capital and the value in use for an asset (including investment in subsidiaries or associates) or cash generating unit (CGU) and assessing the fair value less cost to sell.

Incremental borrowing rates IFRS 16

The discount rate (incremental borrowing rate or IBR) used to bring operating leases onto the balance sheet is an area that involves significant judgement and could have a material impact.

Our valuation specialists consider factors to derive a specific IBR to support your financial reporting. These include: existing debt finance available, lease term or maturity, any potential economic or political factors associated with the location of the lease, type of asset and expected leverage available on that asset, and the overall level of indebtedness.

Share-based payments IFRS 2 / FRS 102

We can assist you with your share-based payment valuations, including:

  • valuation of shares or share options
  • with or without market-related performance conditions (such as total shareholder return)
  • using a Black Scholes Merton option pricing model, or a Monte Carlo simulation model
  • under IFRS 2 or FRS 102.

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