Goodwill is an intangible asset arising as a result of name, reputation, customer loyalty, location, products, and similar factors not separately identified. In the current economic climate the potential impairment of goodwill and other assets is becoming an increasingly important issue for many companies. It is common practice for companies to commission formal opinions from independent valuation firms every two to three years and conduct Directors' valuations in the years in between but, as economic prospects deteriorate, there is increasing pressure from auditors for formal independent opinions to be provided.
Taking this into consideration, Brand Finance offers a 3 tier consultancy service for both initial recognition of assets post-purchase (IFRS 3) and subsequent impairment reviews (IAS 36) in order to provide clients with maximum flexibility and choice:
1) Formal Brand Finance opinion
- valuation model creation, preparation of report in accordance with international valuation standards containing valuation opinion, supporting background information and schedules.
2) Directors' opinion + Brand Finance analysis
- valuation model creation, brief report highlighting key findings and assumptions, no formal valuation or impairment opinion (indicative only). Directors to form their own view.
3) Directors' opinion + Brand Finance guidance
- Directors conduct all analysis and create valuation models. Brand Finance provides templates for model creation, guidance throughout the process and a final review.
Please contact us at firstname.lastname@example.org if this is of relevance to you and your business.