Question

What is the role of Corporation Valuation with the supporting document of the new IFRS 9 Financial Instrument?

Answer 1

IFRS 9 Financial Instruments is the IASB's replacement of IAS 39 of Financial Instruments : Recognition and Measurement. The standard includes requirement of recognition and Measurement, impairment derecognition and genral hedge of accounting.

Corporation valuation forms the basis of corporate finance activity including M&A, fund raising, sale of businesses and also to meet regulatory and accounting requirements. The rapid globalisation of world economy has created both opportunities and challenges for organisations leading to uncertainty blowing across global markets and raising importance of independent valuations all over the world.

The corporation valuation with the supporting document of the new IFRS 9 Financial Instrument helps to hold the financial assets to collect their contractual cash flows, rather than with a view to selling the assets to generate cash flows. However, their is no requirement that financial assets are always held until their maturity, and IFRS 9 identifies some sales that are considered consistent with the 'Hold to Collect' business model irrespective of their frequency and significance.