MW Insights – December 2022
As the year wraps up, Munday Wilkinson would like to thank our colleagues and referrers for another positive year. Thankfully, times appear to be returning to some form of normality (save for the weather).
Updates at MW
A few updates on the happenings at MW:
- We are delighted to announce Joshua Wheeler has been appointed a director and principal of our firm. If you have called or emailed our office in the last few years, then no doubt you have already met Joshua. He brings extensive accounting and industry experience, as well as terrible dad jokes to our leadership team, and has recently completed the experienced pathways course with CA ANZ for the Business Valuation Specialisation.
- We are also delighted to welcome a new employee, Pauline, in the new year. Pauline has experience in forensic accounting, corporate finance, and insolvency.
- Our office will be closed during the Christmas and New Year period from 12pm 16 December 2022 to 9am Monday 9 January 2023, however a skeleton staff will be available for any urgent assistance required.
Please join us in congratulating Joshua and welcoming Pauline. 2023 is shaping up to be an exciting year here at MW.
We want to share with everyone some insights into the world of Business Valuations and Forensic Accounting – Both industry knowledge and our observations. In this issue, we cover the wonderful world of Business Valuations.
Our valuation reports are prepared in line with APES 225 Valuation Services which is issued by the Accounting Professional & Ethical Standards Board (APESB). APES 225 prescribes three types of valuation engagements:
- Valuation Engagement
- Limited Scope Valuation Engagement
- Calculation Engagement
The extent of work and evidence obtained reduces with each type of engagement, with Valuation Engagements being the most robust and our default engagement type. We pride ourselves in providing independent expert reports, therefore our preference is to undertake Valuation Engagements or Limited Scope Valuation Engagements to provide our clients with a conclusion of value and a strong foundation to rely on.
If you are considering engaging a business valuer for litigation, disputes, negotiations, or tax purposes, we strongly recommend ensuring your report is prepared on a Valuation Engagement basis. A Limited Scope Valuation Engagement can be a great starting point for negotiations or to gain an idea of what a business may be worth, however they are less robust and generally not appropriate if they will be relied upon in a legal matter or for an ATO review, which is why we recommend a Valuation Engagement for most of our matters.
Sometimes it is out of our control and what starts off as an Engagement Valuation can become a Limited Scope Valuation Engagement – This occurs when we, the valuer, are not “free to employ the Valuation Approaches, Valuation Methods, and Valuation Procedures that a reasonable and informed third party would perform taking into consideration all the specific facts and circumstances of the Engagement”. Therefore, it is imperative to provide your valuer with all information they request as it may significantly impact the engagement and their assessment (something to keep in mind for family law matters!).
Stay tuned for future newsletters where we will dive into more exciting topics and even some tips to assist you based on our observations.
As always, you can reach out at any time (03) 9816 9122 or email us at email@example.com if you require our assistance or want to talk Business Valuations and Forensic Accounting.
Until then, we wish everyone a Merry Christmas and Happy New Year.
Victoria, Russell, and Joshua