Impairment Assessment and Review Services
At Covenant Business Advisory Pte. Ltd, we specialize in providing comprehensive Impairment Assessment and Review Services. Our team of professionals helps businesses evaluate and manage the value of their assets, ensuring compliance with local accounting standards while safeguarding the accuracy of financial reporting.
What is Impairment Assessment and Review?
Impairment assessment and review involve analyzing whether the carrying value of an asset exceeds its recoverable amount. If an asset is impaired, its value must be adjusted to reflect its fair value in compliance with Singapore Financial Reporting Standards (SFRS).
Why is Impairment Assessment and Review Important?
- Regulatory Compliance: Meet the requirements of SFRS, IFRS or other accounting frameworks.
- Accurate Financial Reporting: Ensure your financial statements accurately reflect the value of your assets.
- Risk Mitigation: Identify and address potential risks from overvalued or impaired assets.
- Investor Confidence: Build confidence and trust of stakeholders by maintaining transparency and accuracy in asset valuation.
Our Impairment Assessment and Review Services
At Covenant Business Advisory, we offer tailored services to meet the unique needs of your business.
1. Asset Evaluation
We assess and value key assets, including:
- Tangible assets such as property, plant, and equipment
- Intangible assets like goodwill, trademarks, and patents
- Financial investments and other assets
2. Recoverable Value Analysis
We calculate the recoverable value of assets using:
- Value in Use (VIU): Present value of future cash flows generated by the asset.
- Fair Value Less Costs to Sell (FVLCS): The net realizable value of the asset if sold.
3. Goodwill Impairment Testing
Our team performs detailed goodwill impairment tests, ensuring compliance with regulatory requirements for mergers and acquisitions.
4. Compliance Reporting
We deliver comprehensive reports that outline the impairment testing process, findings, and recommended adjustments. These reports are designed to meet audit and regulatory standards.
5. Advisory on Asset Management
We provide actionable recommendations to address impairment risks and optimize asset utilization for long-term value.
Who Benefits from Impairment Assessment and Review Services?
Our services are essential for:
- Companies with Significant Assets: Regular evaluations to ensure accurate valuation and compliance.
- M&A Participants: Post-acquisition goodwill and asset impairment assessments.
- Industries Facing Economic Challenges: Proactively identifying impairment risks in volatile markets.
- Auditors and Financial Professionals: Supporting accurate and compliant financial reviews.
Why Choose Covenant Business Advisory?
- Industry Expertise: Our team has extensive experience across a wide range of industries, ensuring accurate and reliable results.
- Customized Solutions: We tailor our services to meet the specific needs and challenges of your business.
- Regulatory Knowledge: Stay ahead with our up-to-date knowledge of international accounting standards.
- Clear and Actionable Reporting: Receive detailed reports that guide you through addressing impairment issues.
Our Impairment Assessment Process
- Initial Consultation: Discuss your business needs and asset portfolio.
- Data Analysis: Gather and review financial, operational, and market data.
- Impairment Assessment: Conduct rigorous tests to evaluate asset value.
- Reporting: Provide detailed findings with actionable recommendations.
- Post-Assessment Support: Assist with implementing adjustments and preparing for audits.