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Financial reporting Valuations

Financial Reporting Valuations

At Lotus Amity we prepare financial reporting valuations. We provide fair value and purchase price allocation reports in accordance AASB 2, AASB 3, AASB 9 and AASB 138.

Our reports are comprehensive and fully supported to meet the Australian Accounting Standard and auditing requirements:

  • AASB 2 Share based payments – Accounting standard AASB 2 specifies the financial reporting required when an entity undertakes a share-based payment transaction, such as the issue of options.
  • AASB 3 Business Combinations – Accounting standard AASB 3 sets out the financial reporting requirements for an entity undertaking a business combination. Under the standard identifiable assets and liabilities assumed are to be recognised and valued, including intangible assets.
  • AASB 138 Intangible Assets – Accounting standard AASB 138  requires that an intangible asset must be identifiable to distinguish it from goodwill.

Case studies

The following case studies illustrate the valuation services we provide for financial reporting purposes:

  • Purchase Price Allocation report in relation to a superannuation business acquisition. Lotus Amity carried out an analysis of the transaction, service and strategic agreements, forecasts, member, revenue and profitability growth, expected acquisition cost savings, contracts acquired, cash and deferred consideration. Lotus Amity valued the investment and promoter agreements, the brand, goodwill, assembled workforce and consideration in compliance with IVS 210, AASB 3 and AASB 138 and adopted an Excess Earnings Method, Relief-from-Royalty Method and Replacement Cost Method.
  • Valuation of loan notes held in a renewable electricity supplier. Lotus Amity analysed the issuers operations, loan note terms, guarantors, debt service and repayment risk, security, subscription and pricing, financial covenants, quarterly performance, budget and forecast, cash and assets values, risk-free rates and market yield spreads.
  • Valuation of the fair value of employee Zero Exercise Price Options together with the expected number to vest, in accordance with AASB 2. Lotus Amity analysed the invitations to participate and long-term incentive plan rules, treatment of options for leavers, vesting dates and conditions, the intrinsic option values, volatility and expiration, risk-free rate, dividend distribution, exercise dates and dividend yield.