AI-Driven Valuations and Impairment Assessment

For businesses adhering to International Financial Reporting Standards (IFRS), it’s crucial to perform accurate and compliant goodwill impairment assessments and annual valuations. AI-driven solutions have revolutionized this process by providing real-time, data-backed insights into the valuation of intangible assets, including goodwill, and ensuring compliance with IFRS requirements. Through advanced AI models, businesses can streamline the annual goodwill impairment test, accurately assess fair value, and generate reliable reports for auditors and regulatory authorities.

Why AI-Powered Goodwill Assessment & Valuation is Critical

✅ Ensures Compliance with IFRS Standards

• AI models integrate seamlessly with IFRS guidelines, specifically IAS 36 (Impairment of Assets) and IFRS 3 (Business Combinations), ensuring businesses stay compliant.

• Automates the annual goodwill impairment test, reducing manual intervention and the risk of non-compliance.

• Supports accurate valuation of intangible assets, aligning with fair value measurement and disclosure requirements under IFRS.

✅ Increases Accuracy & Reduces Risk of Overstatement

• AI-driven solutions assess goodwill value based on historical performance, market conditions, and business forecasts.

• Incorporates predictive analytics to evaluate the future performance of the underlying assets, reducing the risk of overstatement or impairment errors.

• AI can identify early signs of impairment by analyzing operational data, economic shifts, and industry trends.

✅ Streamlines Annual Valuation & Goodwill Testing

• Automates data collection from various departments, ensuring timely and accurate assessments.

• Uses machine learning to forecast future cash flows, estimate the fair value of assets, and identify potential goodwill impairment.

• Facilitates easy scenario analysis, allowing businesses to simulate different market conditions and business performance scenarios.

✅ Improves Transparency & Documentation

• AI-driven solutions generate clear, auditable reports that provide full transparency during internal assessments or external audits.

• Improves the documentation of assumptions made during valuation and goodwill testing, ensuring easy reference for compliance and regulatory checks.

• Provides a real-time update on valuations, making it easier for businesses to track changes over time and address auditor concerns.