Valtech Enhances Its Valuation Models and Programme to Better Support Clients with Accounting and Audit-Related Valuations
In response to evolving audit requirements and the increasing level of review performed by auditors on work prepared by clients’ valuation experts, Valtech has continued to refine its valuation models and programme to provide clearer, more structured, and better-supported valuation analyses.
Portfolio Valuation
For portfolio valuation work for private equity funds and family offices, we have also enhanced our valuation model and system to handle a broader range and larger volume of investments more efficiently, while allowing our valuation specialists to consider the specific characteristics of each investment. These enhancements are designed to better support IFRS 9-related valuation requirements and to provide more comprehensive supporting documents and workings for auditors’ review.
ESOP Valuation
To support reporting requirements under IFRS 2 Share-based Payment, we can provide fair value analysis by vesting tranche, reflecting the fact that share-based payment expenses are generally recognised with reference to vesting dates. Where applicable, pre-vesting forfeiture, dilution, and suboptimal exercise factors are also presented in a clear manner to assist auditors in their review and reperformance procedures. This enables clients to obtain a more detailed set of valuation workings to support their accounting entries, with improved transparency for audit purposes.
Incremental Borrowing Rate Valuation
In addition, our valuation programme can now provide more detailed breakdowns for selected accounting purposes. For example, when performing an assessment of the incremental borrowing rate under IFRS 16 Leases, we can further prepare an IFRS 16 amortisation schedule to support the related accounting analysis.
Our Approach: Balancing Efficiency, Professional Judgment, and Audit Support
Valtech’s approach remains focused on providing valuation analyses that are verifiable, justifiable, and aligned with relevant professional standards. We use technology, including AI-enabled tools where appropriate, to improve efficiency, research depth, and error detection. At the same time, our valuation specialists continue to exercise professional judgment and maintain independent views throughout the valuation process. Our workings are not produced through a fully automated workflow; they remain subject to specialist review and control.
