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