According to the arrangements made within the International Financial Reporting Standard (IFRS), enterprises should allot the purchase price of an acquisition to all identifiable assets and liabilities (purchase price allocation). Subsequently, annually an impairment test should be carried out on the activated goodwill and other immaterial fixed assets with unlimited life-span.
Sman Business Value has experience in carrying out impairment tests. Upon consultations with the accountant of the partnership and the management of the enterprise concerned, we can set up a structure within which the factors relevant for the valuation, such as capital costs, growth expectation, and market position, are recorded clearly and can be evaluated periodically. Because we are occupied daily with business valuations, Sman Business Value is a professional partner for your impairment tests.
If you are involved in an impairment test or purchase price allocation, then please contact us for an introductory meeting.