<  Back to Advisory
V

Value-In-Use

Advisory

ValuStrat provides Value-in-Use assessments to estimate an asset's or cash-generating unit's fair value based on potential revenue over the remaining useful life. This exercise can be useful for strategic decision-making, such as selling or retaining specific assets, evaluating assets or business segments, carving-out business segments, or impairment testing.

Value-in-Use is an essential requirement for clients seeking to engage in Impairment testing as per International Accounting (IAS-36) and to provide an accurate measure for allocating purchase price in the purchase price allocation exercise under International Financial Reporting Standards (IFRS-3).

Value-in-Use is also used to evaluate certain asset class values to calculate the residual value.

Why do you need to conduct a Value-In-Use assessment?

  • To estimate an asset's or cash-generating unit's fair value based on revenue potential over the remaining useful life
  • To support strategic decision-making - such as selling or retaining specific assets, evaluating assets or business segments, and/or carving-out business segments
  • To conduct impairment testing - to provide an accurate measure for allocating purchase price in the purchase price allocation exercise as per International Accounting (IAS-36) and International Financial Reporting Standards (IFRS-3)
  • To calculate Residual Value - Evaluating value to be assigned to certain asset classes to remove from overall enterprise value for the residual value

Connect with our experts in Value-In-Use. We’re always looking to work on new perspectives, new research and new ideas.