Financial valuation insights from Assetica, covering methodologies, EBITDA multiples, private equity, portfolios and value drivers for Dubai and UAE businesses.
Financial valuation covers the engagements where accounting standards, auditors and regulators set the rules: purchase price allocations under IFRS 3 after an acquisition, goodwill impairment testing under IAS 36, fair value measurement under IFRS 13, intangible asset and brand valuations, and the financial modelling that underpins them. These valuations differ from deal valuations in one important way: they recur, and they are tested by auditors every year. This category explains what each requirement involves, when UAE businesses trigger it, and what makes a financial-reporting valuation defensible: documented methodology, inputs mapped to the fair value hierarchy, and independence from the party the number benefits. Assetica prepares audit-ready financial valuations to IFRS and IVS standards across the UAE and GCC.
What is fair value under IFRS 13?
Fair value under IFRS 13 is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. It is a market-based measurement, not an entity-specific one.
When does a UAE company need a valuation for financial reporting?
Most commonly for purchase price allocation after an acquisition under IFRS 3, annual goodwill impairment testing under IAS 36, intangible and brand valuation under IAS 38, and share-based payment measurement. Auditors require these to be independently supported.
What is the difference between enterprise value and equity value?
Enterprise value is the value of the operating business on a debt-free, cash-free basis. Equity value is what the shareholder actually receives: enterprise value less net debt, minority interests and preferred equity. Confusing the two is one of the most common valuation errors.
Assetica is an independent business valuation firm in Dubai. We do not audit and we do not broker deals, so the number carries no conflict. Book a free scoping call or see the core business valuation service.