Benefits

The valuation of assets under the accounting standards is a highly technical area and traditionally undertaken by experienced valuers with detailed knowledge of over a dozen complex accounting standards. As a consequence of the knowledge and specialist skills requirements and the associated risk of making material errors the cost of engaging professional valuers has traditionally been very high.

 

Fair Value Pro however now provides every entity with the ability to undertake their own valuations in full compliance with the relevant standards without need to have the detailed knowledge or extensive specialist expertise. This has been achieved by leveraging off the experience and intellectual property of international experts in this complex area and building it within the system. The result is a single system that any officer in the entity can use to record assets and produce valuations without the need to have detailed knowledge of the nuance of the various accounting standards or valuation methodology.

The key benefits of using
Fair Value Pro to produce your valuations are –

Significantly reduced cost of compliance.

This is achieved both from the reduced need to engage external consultants as well as savings and efficiencies achieved by in-house staff being able to complete the work with minimal set up

Increased assurance

That the valuations will be produced in full accordance with the accounting standards and will satisfy audit requirements.

Single data repository for all valuations.

Even within the best of organisations it is common to find multiple and different versions of the same valuation across different departments and each with different results. Fair Value Pro provides a single central source of truth for all valuations and via a finalisation and archive process ensures the audited valuations are easily identifiable and available for later revaluations.

Flexibility –

Not only regarding the methodology and assumptions but also the ability to vary the amount of internal and external resources required for a specific valuation. For example an entity may engage specialist external consultants to capture condition data regarding specific assets but then use that data to feed directly into Fair Value Pro to produce the valuations internally. Alternatively, they may engage a valuation firm to undertake the initial valuation but require then to use Fair Value Pro. This provides the ability to use the same data to produce valuations in-house in the future.

Audit efficiencies

Achieved through the design of the system to satisfy auditor requirements, in-built validations and the ability of auditors to undertake procedures from their own office via online access.

Protection from loss of knowledge and inefficiencies

Resulting from changing valuers or in-house staff between revaluations. Staffing movements occur regularly and often results in new officers starting with low levels of knowledge, confusion about process and reliability of data, uncertainty about previous assumptions and ultimately leads to significantly increased timeframes and cost. Fair Value Pro provides an easy step process with all previous valuation files stored is a single safe location enabling efficient revaluation processes.

Ability to produce annual valuations

Via simple roll-over and desktop update process. This keeps all the registers up to date and synchronised as well as resolving a range of accounting issues related to impairment and the need to undertake annual reviews of assumptions and indicators of changes in value.

Ability to produce draft valuations

External to existing systems prior to year end. This enables entities to forecast or run various scenarios without affecting anything within the key finance or asset management system. Once settled on the final outcome the entity can produce the final valuation and upload it directly to the finance or asset management system with minimal effort.

Integration with the Asset Management Framework.

Rather than being dependent on the valuation methodology of external consultants – entities can ensure the valuation framework is 100% consistent with the Asset Management Framework so that data collected from each can feed seamlessly into each other.

Increased transparency and accountability

Entities can create a range of users with different access rights. This enables those not directly involved in the valuation to review the methodology, assumptions and results as well as assess progress of each valuation. Likewise, it enables the entity to allocate and project manage specific tasks assigned to individual employees.

Fair Value Pro

Is a true global product providing multi-currency capability and operating off the Microsoft Azure cloud and can be tailored to and operated in any jurisdiction.