Wiley Guide to Fair Value Under IFRS: International Financial Reporting Standards

Your one indispensable guide to all the Fair Value requirements of IFRS

Acomplete guide to the complex valuation requirements of IFRS, this book includes chapters on theoretical and practical applications, with extensive examples illustrating the required techniques for each application.

Appropriate for anyone involved professionally with finance managers, accountants, investors, bankers, instructors, and students this guide draws on a stellar panel of expert contributors from fourteen countries who provide international coverage and insight into a diverse range of topics, including:

Fair Value in implementing IFRS

Market Approach

Income Approach Capitalization and Discounting Methods

Economic and Industry Conditions

Cost of Capital

Financial Statement Analyses

Impairment Testing

Intellectual Property Rights (patents, copyrights, trademarks)

Projecting Financial Statements

Liabilities

Customer Relationships

Share–based Payment

Plant and Equipment

Guide to Fair Value Under IFRS is the first international valuation book of its kind. Fully compliant with the Certified Valuation Analyst curriculum, it provides detailed guidance as to how fair value is to be determined and fills numerous gaps in common understanding of IFRS requirements.

Foreword xi
Liu Ping, China

Preface xiii
Jim Catty, United Kingdom

About the Contributors xix

1 Fair Value Concept 1
Alfred M. King, United States

2 The Cost Approach 19
Yea–Mow Chen, Taiwan, and Stephen L. Barreca, United States

3 The Market Approach 37
William A. Hanlin Jr. and J. Richard Claywell, United States

4 Income Approach: Capitalization Methods 57
Bennet Kpentey, Ghana

5 Income Approach: Discounting Methods 65
Wolfgang Kniest, Germany

6 Excellent Valuation Reports 83
Brandi L. Ruffalo and Robert C. Brackett, United States

7 Assessing External Risks 95
Warren D. Miller, United States

8 Strategy and Benchmarking 115
William C. Quackenbush and James S. Rigby Jr., United States

9 Cost of Capital 129
Wolfgang Ballwieser and Jörg Wiese, Germany

10 Risks and Rewards 151
William A. Hanlin Jr. and J. Richard Claywell, United States

11 Financial Statement Analyses 165
Martin Costa, Germany

12 Projecting Financial Statements 183
Klaus Henselmann, Germany

13 Impairment Testing 201
Frank Bollman and Andreas Joest, Germany

14 Auditing Valuation Reports 215
Andreas Bertsch, Germany

15 Copyrights 223
Fernando Torres, Mexico

16 Customer Relationships 241
Brandi L. Ruffalo, United States

17 Derivatives and Financial Instruments 255
Samuel Yat Chiu Chan and Lisa Cheng, Homg Kong

18 Domain Names 273
Wes Anson, United States

19 Hedging 285
Richard Pedde, Canada

20 Intellectual Property Rights 299
Byeongil Jeong, South Korea

21 Intangible Assets 311
Stan Sorin, Romania

22 Leases 323
Terry A. Isom and Andrea R. Isom, United States

23 Liabilities 337
Karrilyn Wilcox, Canada

24 Manufacturing in Crisis Periods 351
Emre Burckin, Ayse Pamukcu, and Zeynep Burckin Eroglu, Turkey

25 Mineral Properties 363
Michael J. Lawrence, Australia

26 Pass–Through Entities 379
Laura J. Tindall and John L. Casalena, United States

27 Patents 391
Heinz Goddar and Ulrich Moser, Germany

28 Petroleum Resources 409
J. Richard Claywell, United States

29 Pharmaceuticals and Biotechnology 421
Sung–Soo Seol, South Korea

30 Plant and Equipment 435
Ev?en Körner, Germany

31 Retail Locations 451
Lim Lan Yuan, Singapore

32 Share–Based Payments 461
Shari Overstreet, United States

33 Software and Systems 477
Susan M. Saidens, United States

34 Unpatented Technologies 487
Anke Nestler, Germany

35 Trademarks and Brands 501
Roger Sinclair, South Africa

36 Transfer Pricing 521
Lionel W. Newton and Christopher J. Steeves, Canada

Glossary 531

References and Bibliography 557

Index 567

JAMES P. CATTY, MA, CPA/ABV (U.S.), CA–CBV (Canada), CVA, CFA, CFE, has been engaged in business valuations around the world for more than fifty years and has undertaken speaking engagements in China, Germany, Romania, Taiwan, Turkey, the UK and the United States. He is Chairman and co–CEO of the International Association of Consultants, Valuators and Analysts (IACVA) with members in twelve countries (NACVA is the U.S. Charter); President of Corporate Valuation Services Limited (CVS), Toronto; and, of Counsel to Hanlin Moss PS, Seattle, Washington and Xian China.