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project? It is important to determine whether the

specialist’s area of expertise is best suited for type of

asset being valued.

• Does the specialist have enough personnel to

carry out the project? The specialist should have

experience in similar projects and it should have

enough resources and personnel to execute the

project within the required timeframe.

• Does the specialist have credentials that demonstrate

his/her experience in similar projects? Seeking

feedback from the specialist’s past and current

clients will help you make the right decision.

Asking the specialists to provide alternatives for

addressing project complexities that can be approached

in different ways can help you select the specialist that is

the best fit for your valuation project.

Management’s responsibility during the valuation

process

Lastly, regardless of whether it opts to have the analysis

done in-house or through specialists, management is

responsible for the results of an entity’s valuations,

particularly those performed for financial reporting

purposes. In light of these responsibilities, we recommend

that management take the following steps for valuations

of intangible assets:

Diagram 4: Management’s responsibilities

Building an effectiveworking relationshipwith the specialist

performing the valuation and maintaining transparent and

clear lines of communication with the specialist through

which the entity is able provide all of the information the

specialist needs, and reviews and approves the project plan

and results helps create synergy between the company’s

own perspectives and the perspectives of the advisor, who

will be more likely to consider the specific needs of the

organization for the valuation project.

Final considerations

Valuations of tangible assets for financial reporting

purposes represent a singular challenge for entities because

they require consideration of two discrete perspectives:

the accounting standards addressing valuations and the

selection of the right valuation approach and methodology

for the valuation. It is common for those involved in

valuations of tangible assets to perform their work

independently, since it tends to be easy for these specialists

to isolate themselves and focus exclusively on their areas of

expertise. Nevertheless, this go-it-alone approach general

makes it difficult for specialists to maintain effective lines

of communication with their counterparts as a medium

for quickly identifying situations where they may need

assistance and in this way ensure that the project results

meet the objectives established initially for the project.

Members of senior management need to remember that

management is accountable to outside parties for the

accuracy of these valuations and that management is a

critical agent for ensuring that the results of the valuation

are in line with the relevant accounting standards and that

the valuation estimates address the characteristics of the

valued assets and the markets where they are bought and

sold.