Company Valuation Under Ifrs: Interpreting

International Financial Reporting Standards (IFRS) are now mandatory in many parts of the world, including Europe, Australia and China. In addition, many countries are in the process of IFRS adoption. Lastly, foreign registrants in US companies no longer have to undertake a costly US-IFRS reconciliation. Therefore, it is clear that investors, analysts and valuers need to understand financial statements produced under IFRS to feed in to their valuations and broader investment decisions.

Nick Antill is a trainer and consultant in the areas of energy and finance, and has many years experience as an equity oil and gas analyst in investment banking Ken Lee is the European accounting and valuation analyst for Citigroup Smith Barney, and has previously worked as a financial trainer and an accountant and tax consultant

Index of exhibits	p. vii
About the authors	p. xi
Preface to first edition	p. xiii
Acknowledgments	p. xix
An IFRS briefing	p. xxi
Preface to second edition	p. xxiii
It's not just cash; accounts matter	p. 1
Introduction - Valuation refresher	p. 1
Distributions, returns and growth	p. 3
Cash, accruals and profits	p. 13
The Economic Profit model	p. 15
The real world of specific forecasts	p. 17
Introducing debt	p. 18
WACC - Forty years on	p. 21
Risk and Return	p. 21
Diversification and portfolio effects	p. 24
The problem of growth	p. 34
Leverage and the cost of equity	p. 37
Building in tax shelters	p. 40
Time varying WACC	p. 54
The walking wounded - real options and capital arbitrage	p. 55
International markets and foreign exchange rates	p. 68
Conclusions on discount rates	p. 68
What do we mean by 'return'?	p. 71
IRR versus NPV	p. 72
Calculating CFROI	p. 76
Another approach: CROCI	p. 85
Uses and abuses of ROCE	p. 85
Key issues in accounting and their treatment under IFRS	p. 87
Revenue recognition and measurement	p. 89
Stock options	p. 100
Taxation	p. 107
Accounting for pension obligations	p. 117
Provisions	p. 129
Leasing	p. 135
Derivatives	p. 145
Fixed assets	p. 154
Foreign exchange	p. 161
Valuing a company	p. 169
Building a forecast	p. 170
Ratios and scenarios	p. 197
Building a valuation	p. 201
Frequent problems	p. 212
Three period models	p. 238
Conclusions regarding basic industrials	p. 243
The awkward squad	p. 245
Utilities	p. 245
Resource extraction companies	p. 262
Banks	p. 273
Insurance companies	p. 299
Property companies	p. 335
An introduction to consolidation	p. 343
Introduction	p. 343
Treatment of Investments	p. 343
Methods of consolidation	p. 344
Further issues in consolidation	p. 349
Accounting for associates and joint ventures	p. 350
Purchase accounting and uniting of interests	p. 355
Foreign subsidiaries	p. 356
Accounting for disposals	p. 357
Modelling mergers and acquisitions	p. 363
Conclusions and continuations	p. 379
Conclusions	p. 379
Continuations	p. 382
Further reading	p. 385
Appendices	p. 389
IAS or IFRS in, or coming into, force	p. 389
IFRS in Emerging Markets	p. 391
Chinese Accounting Standards - major differences with IFRS	p. 393
Analysis formulae	p. 394
Index	p. 399
Table of Contents provided by Ingram. All Rights Reserved.

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Company Valuation Under Ifrs: Interpreting and Forecasting Accounts Using International Financial Reporting Standards

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