KPMG latest webinar on Friday

Tuesday, 23 November 2021 04:35 - - {{hitsCtrl.values.hits}}

Ajantha Weerasekara

Kasun Gunawardhana

Titled ‘Valuation of continuous loss-making entities for impairment testing purposes’

The KPMG Sri Lanka Academy will hold its 31st virtual session of the ‘Friday Mid-Afternoon Chat’ series on 26 November from 3 p.m. onwards focusing on ‘Valuation of continuous loss-making entities for impairment testing purposes’.

Resource personnel are Principal, Advisory Ajantha Weerasekara and Manager – Advisory Kasun Gunawardhana at KPMG in Sri Lanka.

There are numerous factors which contribute towards a corporate entity becoming distressed. High operating leverage, undiversified revenues, a significant portion of illiquid or low ROI assets and changes in the macro environment such as COVID pandemic, etc. are some of those factors which play a role in an entity becoming troubled. Valuation of such distressed entities invariably becomes more complicated, owing to negative cash flows and lack of liquidity in assets, and difficulty of developing a meaningful business plan.

KPMG will be discussing the ‘Valuation of distressed entities for impairment purposes’. The session will provide a comprehensive coverage on the following topics: Discussion of provisions under IAS 36 Impairment and IFRS 13 Fair Value; Selection of the appropriate valuation methodology; Selection of the suitable market multiples and key adjustments to be made under relative valuation methodology and Basis of financial forecast and risk mitigating mechanisms under DCF methodology and Selection of the appropriate discount factor, capital structure and others.