The global financial markets continue to struggle to regain value lost from unprecedented turmoil, which has created a number of new challenges for corporates. As we see asset prices fall, for companies that have made acquisitions or expanded in recent years, it may mean that the value of these acquisitions/expansions no longer justifies the expenditure. Under the relevant accounting standards, this fall in value will need to be recognised in the company’s accounts as impairment charges.
In the current economic environment, we should expect impairment to become an important focus for management, especially as we approach the end of year reporting season. With an increase in the number of Hong Kong listed companies with impairment indicators, this financial year is presenting itself as a particularly challenging one.
To cope with these potential impairment issues, we cordially invite you to a seminar organised by our valuation professionals to share their views on the related impairment risks and the impacts on your financial statements.
Our seminar will be focused on:
1) The current market situation and its relation to impairment
2) Potential challenges and issues when performing impairment testing
3) How to get prepared for the year end testing?