Preparatory Course for the Chartered Valuer and Appraiser (CVA) Programme

What you will learn

• Describe the business valuation landscape and the future developments
• Identify the valuation standards applicable to business valuation
• Describe the competencies, role, behaviour and conduct of business valuers and the competency framework for professional valuers
• Discuss the valuation context and the role that business valuation plays in the financial and corporate world
• Differentiate various terms, bases and premises of value and their implication to the valuation outcome
• Explain the key concepts of accounting and finance relating to business valuation
• Apply the principles of business valuation
• Describe and adopt a valuation process which is acceptable in a transactional and/ or financial reporting environment; and prepare a credible and professional business valuation report
• Describe and adopt the best practices in preparing prospective financial information

Module 2 – Law and Valuation

This module covers how a business valuation exercise is conducted within the legal and regulatory framework.

Upon completion of this module, you will be able:

• Describe key aspects of the Singapore legal framework for dispute resolution
• Explain the key characteristics of various business forms for doing business and distinguish one form from the other
• Distinguish the type of ownership interests associated with each form for doing business
• Identify the key areas of law where valuation may be required, primarily in the context of disputes which arise in the relevant area of law
• Identify the main legal principles governing specific remedies for various causes of action which may affect how the issue of valuation should be considered
• Identify the legal obligations and potential liability that business valuers may be subject to in the course of their work
• Describe the role and duties of business valuers in the context of civil litigation and arbitration proceedings

Module 3 – Valuation for Transactions

This module explores the applicable valuation standards used to conduct business valuation for transactions.

Upon completion of this module, you will be able to:

• Compare and contrast open market and notional valuation, share market and corporate valuation as well as public listed and private companies’ shares
• Implement International Valuation Standards and guidelines, including the International Private Equity Valuation (IPEV) and Intangible Assets valuation guidelines, used for the conduct of business valuation for transactions
• Implement various valuation approaches to the valuation of business and equity, covering in depth: the market, income and asset-based approaches, their relevant methodologies as well as the valuation parameters associated with them
• Identify the various technical and practical issues involved in the application of the various valuation approaches and methodologies, and the pros and cons of adopting such approaches and methodologies when conducting business valuation
• Identify the principles behind the valuation of public listed companies, understand its context, including securities and exchange regulations on business valuation carried out in the public domain
• Identify the principles behind the valuation of private companies, understand its context, including the types of discounts and premium and the circumstances that warrant their application

Module 4 – Valuation for Financial Reporting

This module examines key financial accounting and reporting issues related to the use of fair value measurement.

Upon completion of this module, you will be able to:

• Explain the definition of fair value in IFRS 13 for financial reporting purposes, and its differences with other bases of value in the International Valuation Standards (IVS)
• Identify and demonstrate the use of fair value measurement framework in IFRS 13 to financial and non-financial assets and liabilities
• Implement the acquisition method in the accounting for business combinations as per IFRS 3
• Implement common valuation methods to value various types of intangible assets
• Examine and implement the impairment testing process for assets including goodwill
• Identify the differences between fair value in IFRS 13 and other valuation bases used in financial reporting
• Identify the roles and responsibilities of a business valuer in a financial reporting environment, including considerations when engaged by an audit client or as part of an audit team

Capstone Module – Applied Valuation

This Capstone module applies a blend of theory and practice of all concepts covered from Module 1 to Module 4 and examines your understanding and appreciation of the complete valuation engagement.

Upon completion of this module, you will be able to:

• Understand how valuation is significantly affected by the structure of entities and business
• Understand how to determine the valuation of a company in different stage of life cycle
• Consider the valuation uniqueness of five specialized industry: (a) Technology, Media and Telecom; (b) Biotechnology; (c) Healthcare; (d) Resources and Renewables; and (e) Financial Services
• Consider valuation challenges posed by companies operating in emerging markets and how they impact their valuation
• Understand the impact of Environmental, Social and Governance (ESG) factors on valuation
• Consider the challenges and the impact on valuations arising from Black Swan situations
• Understand how to produce a valuation report in accordance with IVS