REV 3570 Valuation
REV 3570 Valuation
Purchase price allocation in accordance with IFRS 3, impairment tests and fair value accounting require that an auditor possesses considerable skills in valuation.
In accordance with IFRS 3, the buyer must measure the total acquisition cost and allocate this cost to the acquired assets, both tangible and intangible, to obligations and to contingent liabilities. Under IAS 36, an entity shall conduct tests for impairment of its assets to check if the firm has incurred in impairment losses. In recent years, accounting standards have had an increasing focus on "fair value accounting".
An auditor is also often asked to help with valuations in connection with generational changes, mergers, forced redemption of shares and so forth.
This course provides students with a solid theoretical basis for conducting valuations and will engage the students in thorough discussions on how the measurements are carried out in practice.
After completing the course, students will have acquired:
- Knowledge of the processes related to valuation
- Understanding of the different valuation models and their weaknesses and strengths
- Knowledge of how to take into account the risks and taxes in valuation
- Knowledge about the preparation of relevant forecasts to be used in valuations
After completing this course, students will be able to:
- Develop relevant forecasts for valuation purposes
- Determine the rate of return to calculate accounting estimates and the enterprise value
- Apply valuation models for calculating accounting estimates and the enterprise value
- Apply recognized methods for calculating the rate of return
- Analyze and use financial information to make forecasts for valuation purposes
- Have an understanding of how leverage influences the calculation of the appropriate level of equity capital.
The students will establish a broad understanding of how various valuation models can form the basis for good decisions, and how such models can be used to support the auditing process.
- Value and value components in a firm.
- Financial risk.
- Risk adjustment of cash-flow.
- Required rate of return.
- Profitability analysis.
- Forecasting of cash flows.
- Cash-flow-based valuation models.
- Income-based valuation models.
- Valuation using multiples.
The course is based on lectures, exercises, cases and hand-ins.
E-learning
When course is delivered online, lecturer, in cooperation with the Academic Servises Network, will organize an appropriate combination of digital teaching and lectures. Online students are also offered a study guide to contribute to progression and overview. Total recommended time spent for completing the course also applies here.
Dersom det er delevalueringer i kurset, og delevalueringene har separate eksamenskoder kan hver av disse deleksamener kontinueres i.
Higher Education Entrance Qualification
Recommended prerequisites are Financial Accounting and Financial Statement Analysis. Alternatively, Management Accounting and Control or equivalent.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 25 Grouping: Group/Individual (1 - 3) Duration: 1 Semester(s) Comment: Specific information regarding requirements for the assignment will be given in class. Exam code: REV35701 Grading scale: ECTS Resit: Examination every semester |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 75 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Both examination elements must be passed in order to obtain a final grade. Exam code: REV35702 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 42 Hour(s) | Lectures with workshops, supervised exercises in groups |
Student's own work with learning resources | 105 Hour(s) | Work with compulsory literature, exercises, and lecture preparation |
Submission(s) | 50 Hour(s) | |
Examination | 3 Hour(s) |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.