Valuations for Financial Reporting

Numbers in a set of financial statements are not always observable prices. When a business is acquired, when goodwill has to be tested, when options are granted or when a financial instrument has no quoted market, the figure that lands in the statements is a fair-value measurement — and it has to stand up to your auditor and to the accounting standard you report under. RN Canada prepares those measurements for owner-managed businesses across Alberta and British Columbia, so the values supporting your statements are defensible, well documented and aligned to the right framework.

What's included

• Purchase-price allocations. Allocating the consideration paid in a business combination across the identifiable assets acquired and liabilities assumed, including intangible assets and the resulting goodwill.
• Goodwill and asset impairment. Supporting impairment testing of goodwill, intangible assets and other long-lived assets, with the cash-flow and discount-rate analysis the standards require.
• Stock-based compensation. Valuing options, units and other equity-settled awards granted to employees and directors, with the option-pricing analysis behind the expense.
• Financial-instrument valuation. Measuring instruments that have no observable market price — warrants, convertible features, certain receivables and payables, and similar items.
• Audit-ready documentation. A clear report setting out the basis of value, the inputs, the assumptions and the sensitivities, prepared to be reviewed by your assurance provider.

How we work

A fair-value measurement is only as good as the framework it is built on. We start by confirming the reporting standard that applies — ASPE for many private Canadian companies, IFRS where it is required or has been adopted, or US GAAP for entities with US reporting obligations — because the standard drives the measurement basis, the permitted inputs and the disclosures. From there we develop the analysis, document the assumptions and sensitivities, and deliver a report your auditor can review without having to reconstruct the work.

We do not quote generic multiples or borrowed benchmarks. Each measurement is grounded in your facts, your industry and the standard you report under, and the assumptions are made explicit so they can be challenged and defended.

Who it's for

This service fits Alberta and BC businesses that have made — or are about to make — an acquisition and need a purchase-price allocation; companies carrying goodwill or intangible assets that must be tested for impairment each year; businesses that grant equity-based compensation and need to measure the expense; and any entity holding financial instruments without a quoted market price. It is equally relevant to companies reporting under ASPE, IFRS or US GAAP, and to those whose auditor has asked for independent support behind a fair-value figure.

It is also useful before a transaction closes, when an early read on how the price will be allocated and what it means for future amortisation and impairment can change how a deal is structured.

How RN Canada helps

We prepare the fair-value measurement, document it to the standard you report under, and deliver a report built to be reviewed by your auditor — coordinating with your assurance team so the valuation and the statements move together rather than in conflict. Because we also handle tax and advisory work, we can flag where a reporting valuation and a tax or transaction value diverge, and why.

General guidance on Canadian accounting and assurance frameworks is published by FRAS Canada and CPA Canada. Our founder, Ozgur Duymaz, holds a Ph.D. in accounting and finance and is a CPA (Canada), ACCA (UK) and CMA (US). To get a defensible fair-value measurement behind your statements, talk to us or browse the full services overview.

This page is general information, not personalized advice. Speak to us about your specific situation.