IFRS

International Financial Reporting Standards (IFRS), developed by the International Accounting Standards Board (IASB), are fast becoming the global standard for the preparation of public company financial statements.  American Appraisal provides global leadership on valuation matters related to IFRS though our involvement with and representation on the International Valuation Standards Council (IVSC). 

What We Do
Fair value measurement is referenced in many sections of IFRS. American Appraisal is well positioned globally to assist clients with all fair value needs.  Our consultants routinely advise clients on IFRS valuation matters, including:

• Business combinations
• Impairment of assets and goodwill
• First-time adoption
• Annual fair value studies (revaluation model)
• Asset componentization

Our Experience
American Appraisal leads the valuation industry in thought leadership and experience.  Our recent IFRS-related valuation projects include:

• Providing IFRS adoption assistance to a Mexican multinational industrial firm with more than 2,000 facilities throughout the Americas, Europe and Asia;   services provided included fair value and asset componentization for select groupings of capital assets
• Assisting the US subsidiary of a European firm with its acquisition of a naval shipbuilding company by fair valuing the acquired shipbuilding facilities, shipbuilding and service contracts, trademarks, technology and designs, and government customer relationships in accordance with IFRS 3, IAS 38 and IAS 16
• Assisting the US subsidiary of a French energy company with several acquisitions, including an $800 million transaction encompassing 16 cash-generating units;  services included fair valuing the acquired real, personal and intangible assets in accordance with both US GAAP and IFRS
• Providing IFRS 3 consulting and valuation services for a European pharmaceutical company in its multibillion-dollar acquisition of a US biotech company
• Providing fair values of a software company’s technology, customer relationships, noncompete agreements and deferred revenue liability for IFRS 3
• Conducting IAS 36-related impairment testing at multiple facilities for a US construction equipment manufacturer
• Assisting a large North American telecommunications firm with its IFRS adoption by providing fair value services for select asset groupings totaling more than $5 billion
• Assisting with the IFRS adoption and preparation of annual fair value updates associated with the steel mills and intellectual property in nine countries throughout Europe and North America for Evraz, a Russian metals and mining company
• Analyzing eight facilities of a Canadian gas company to assist with its IFRS adoption, and performing additional IAS 16-related asset componentization services of its pipelines, buildings, site improvements and various equipment classes
• Assisting an Indian oil and gas company with its IFRS adoption; services included fair value and componentization work on 10 petrochemical refineries, as well as pipeline, distribution, R&D and retail facilities throughout India
• Developing a template to assist a Korean car manufacturer with componentizing its North American headquarters
• Assisting the Canadian subsidiary of a Japanese beverage company with the componentization of its tangible assets at its brewery facilities

Why American Appraisal?
American Appraisal is a global enterprise spanning North and South America, Europe, and the Asia-Pacific region. We provide expertise in valuation and related services across all classifications of tangible and intangible assets.

Our consultants understand how auditors and regulatory authorities want clients to address fair value matters under IFRS.  Such experience enables us to provide useful insights to clients in understanding the differences between US GAAP and IFRS requirements, the potential benefits of IFRS and the pitfalls to avoid in addressing issues related to fair value,