Standardized IFRS 36 service or solution for corporates

CD Financial Technology (CDFT) has developed a standardized service and solution for corporates and other relevant entities, the outcome of which are the risk-adjusted discount rates consistent with the requirements of the IAS 36 standard of IFRS. These can be applied in Value in Use valuations in cases in which no reliable and comparable external valuations for business units are available. The risk-adjusted discount rates are based on the time value of money, the estimated specific risks of the cash flows of the Cash Generating Units, and the risk preferences of the shareholders.

The calculation procedure is designed to meet with the most stringest requirements of the IAS 36 standard, and the discount rates are also directly applicable in investment planning and decision making, as well as in mergers & acquisitions and in divestments. The analysis framework is very flexible and the interim and final results can also be extended for use in strategic planning.

CDFT offers the service to corporates, financial institutions, investment banks, consultancies and other relevant bodies and entities. The service can be structured so that CDFT only processes historical cash flow data for estimation of the discount rates, and any NPV calculations using forecasted cash flows are in such a case processed by the client.

CDFT can also offer a system solution for clients that prefer processing all the analyses internally. Both the service and the system solution are based on the R/V Platform, the advanced path Monte Carlo simulation system by CDFT. Valuations of R/V Platform are based on Net Present Values of future cash flows, adjusted for both general and specific risks of those cash flows.

Valuations can be used for both external reporting and for acquisition and disinvestment planning and decision making.