Fair Value Measurement
Fair value measurement is critical for financial reporting, accounting, and business decision-making. Whether for financial instruments, derivatives, impairment testing, or acquisition adjustments, accurately determining fair value under applicable standards is essential.
At Synpact Consulting, we specialize in delivering robust, audit‑ready fair value measurement solutions under IFRS (IAS 39 / IFRS 13), ASC 820 / 825, and local GAAP frameworks. Our team of valuation, modeling, and accounting experts ensures your valuations are defensible, transparent, and aligned with regulatory expectations.
Why Choose Synpact for Fair Value Measurement
- Standards & Regulatory Expertise: Deep experience with IFRS 13, ASC 820, local valuation standards, and disclosure requirements.
- Audit‑Grade Documentation: Valuation reports, assumptions, work papers, and stress tests ready for auditor review.
- Modeling Rigor: Sophisticated valuation models for financial and non‑financial assets / liabilities.
- Hierarchy Focus (Level 1 / Level 2 / Level 3): Appropriate classification and justification under fair value hierarchy.
- Quick Turnaround & Flexibility: Fast deliverables even under tight reporting timelines.
- Broad Industry Experience: Coverage across financial services, real assets, tech, energy, and more.
- Transparent Assumptions & Sensitivities: Clear rationale, scenario analysis, and sensitivity tables to support valuations.
Our Fair Value Measurement Offerings
Financial Instruments Valuation
Debt securities, bonds, loans, credit instruments.
Derivatives (options, forwards, swaps).
Embedded derivatives and hybrid instruments.
Structured products & securitized assets.
Non-Financial Assets & Liabilities
Real estate and property.
Plant, machinery, and equipment.
Intangible assets (e.g., trademarks, patents, customer relationships).
Contingent liabilities and commitments.
Level 1 / Level 2 / Level 3 Classification & Analysis
Assessment of observable vs unobservable inputs.
Input sourcing (market, broker quotes, internal models).
Justification and movement between levels.
Impairment & Revaluation Support
Performing impairment tests using fair value less cost of disposal.
Revaluation adjustments for balance sheet remeasurement.
Model Audit & Sensitivity Testing
Stress testing key assumptions.
Scenario analysis, Monte Carlo simulations.
Back‑testing and justification of valuation outputs.
Disclosure & Reporting Support
Fair value note disclosures (methods, assumptions, sensitivity).
Footnotes conforming to IFRS / US GAAP style.
Liaison with auditors and review committees.
Process & Workflow
- Engagement Setup & Planning – Confirm scope, applicable accounting standards, client objectives.
- Data Gathering & Market Research – Collect financial data, market prices, benchmark data, contract terms.
- Input Analysis & Segmentation – Separate observable & unobservable inputs; classify valuation levels.
- Model Construction & Valuation – Build valuation models, run simulations, derive fair values.
- Review & Sensitivity – Conduct sensitivity analyses, scenario checks, peer benchmarking.
- Finalization & Documentation – Produce final reports, documentation, disclosure notes.
- Audit & Review Support – Support questions from auditors and stakeholders as needed.
Industries & Use Cases
Industries:
- Financial Services & Banking
- Real Estate & Infrastructure
- Energy & Utilities
- Technology & Software
- Industrial / Manufacturing
- Year‑end financial reporting (quarterly/annual valuations)
- Impairment testing or fair value remeasurements
- Fair value for acquisitions, business combinations, carve‑outs
- Valuation of financial instruments, derivatives, and hybrid securities
- Regulatory compliance and audit defense
Frequently Asked Questions (FAQs)
Q: What standards do you support for fair value measurement?
A: We support IFRS (especially IFRS 13), ASC 820/825, and applicable local GAAP.
Q: What is the difference between Level 1, 2, and 3 inputs?
A: Level 1: quoted market prices in active markets; Level 2: observable inputs; Level 3: unobservable inputs.
Q: How long does a fair value measurement engagement typically take?
A: Simple instruments: 1–2 weeks; complex or illiquid valuations: 3–6+ weeks.
Q: Can you provide sensitivity or scenario analysis along with valuation?
A: Yes — we include sensitivity tables, scenario analyses, and Monte Carlo simulations.
Q: Will the output be audit‑ready and defensible?
A: Absolutely — all deliverables include full documentation and audit support.
Call to Action
Need robust, audit‑ready fair value measurement? Let Synpact Consulting support your valuation requirements with clarity, precision, and transparency. Book a consultation or contact info@synpactconsulting.com to discuss your valuation project.