Practice Inspection Checklist

Appendix B to Practice Standard 110 – Valuation for Financial Reporting

Appendix B to Practice Standard 110
(Note: all specific required disclosures on this checklist are in addition to those contained in Standard 110)
Fundamental Information
  1. Statement that the VFR Valuation Report has been prepared for financial reporting purposes
/ Yes □ No □
  1. Identification and description of the particular assets, liabilities and/or equity that are the subject of the VFR Valuation Report
/ Yes □ No □
  1. Specific parties that are the intended users of the VFR Valuation Report
/ Yes □ No □
  1. Statement restricting the use of the VFR Valuation Report to the persons for whom the VFR Valuation Report was prepared, and only for the stated purpose
/ Yes □ No □
  1. Identification and description of the primary financial accounting standard applicable to the VFR Valuation Report
/ Yes □ No □
  1. Definition of value used
/ Yes □ No □
  1. Effective date of the valuation
/ Yes □ No □
  1. Type of VFR Valuation Report being provided (Comprehensive, Estimate or Calculation Valuation Report)
/ Yes □ No □
  1. Key facts and/or assumptions made in arriving at the valuation conclusions, including information as to their source or basis (to the extent possible)
/ Yes □ No □
Business Combinations and the Valuation of Intangibles (disclosure should include Items 10-17)
  1. Identity of the acquiring entity
/ Yes □ No □
  1. Effective date for measurement
/ Yes □ No □
  1. Nature and amount of purchase consideration
/ Yes □ No □
  1. Where the Valuator has valued the purchase consideration, disclosure of the basis of the valuation as well as the approach and methods used, and key assumptions used
/ Yes □ No □
N/A□
  1. Disclosure of whether the Valuator was involved in the identification of the assets acquired and/or liabilities assumed
/ Yes □ No □
  1. Definitions/explanations of key terms or phrases having a technical meaning
/ Yes □ No □
  1. Valuation method(s) and reasons such method(s) was selected
/ Yes □ No □
  1. Significant/key assumptions made and the basis for selecting such assumption in the analysis of the value of the assets acquired/liabilities assumed, including the following (if relevant):

a)Assumptions regarding economic life / Yes □ No □
N/A□
b)Assumptions regarding customer attrition / Yes □ No □
N/A□
c)Assumptions regarding technological change and migration / Yes □ No □
N/A□
d)Assumptions regarding contract renewal / Yes □ No □
N/A□
e)Assumptions made to determine tax amortization benefits in respect of tangible and/or intangible assets / Yes □ No □
N/A□
f)Discussion of “market participant” assumptions and/or “buyer-specific” assumptions and related adjustments/analysis and their impact on the valuation analysis / Yes □ No □
N/A□
g)Assumptions regarding contributory asset charges / Yes □ No □
N/A□
h)Assumptions affecting discount rates / Yes □ No □
N/A□
i)Assumptions regarding royalty rates / Yes □ No □
N/A□
Impairment of Goodwill and Intangible Assets (disclosure should include Items 18-25)
  1. Reporting unit(s) and/or assets which are the subject of the VFR Valuation Report
/ Yes □ No □
  1. The impairment test date
/ Yes □ No □
  1. Carrying value of the asset(s) and/or reporting unit(s)
/ Yes □ No □
  1. Definition/explanation of valuation and other terms or phrases having a technical meaning
/ Yes □ No □
  1. Valuation method(s) and reasons such method(s) was selected
/ Yes □ No □
  1. Significant/key assumptions made and the basis for selecting such assumption in the analysis of the value of the assets acquired/liabilities assumed, including the following (if relevant):

a)Assumptions regarding economic life / Yes □ No □
N/A□
b)Assumptions regarding customer retention or attrition / Yes □ No □
N/A□
c)Assumptions regarding technological change and migration / Yes □ No □
N/A□
d)Assumptions regarding contract renewal / Yes □ No □
N/A□
e)Assumptions made to determine tax amortization benefits in respect of tangible and/or intangible assets / Yes □ No □
N/A□
f)Discussion of “market participant” assumptions and/or “buyer-specific” assumptions and related adjustments/analysis and their impact on the valuation analysis / Yes □ No □
N/A□
g)Assumptions regarding contributory asset charges / Yes □ No □
N/A□
  1. If applicable, an analysis of the aggregate value of the reporting unit(s) and/or discount/premium to market capitalization
/ Yes □ No □
N/A□
  1. Where assets are grouped for the purposes of performing an impairment test, when determining value or when assessing the amount of impairment, the basis upon which assets are grouped should be disclosed
/ Yes □ No □
N/A□
Overall Disclosure Adequacy
  1. Overall: disclosure is sufficient to allow a reader to understand the basis of the valuation and to form a reasoned view on the conclusions reached
/ Yes □ No □
Summary of Initial Observations – Appendix B to Practice Standard 110
# / Observed Deficiency / Notes From Discussion with Member/Registered Student

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