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FIN290 Business Valuation Application

This subject provides students with a working knowledge of the issues involved in the valuation of a business, including management of a valuation practice. Fundamental to any valuation is an understanding of the activities of the business and the reasons for undertaking the valuation. These issues are explored before the various valuation methodologies are reviewed.

The valuation process is examined, including due diligence and writing a valuation report. The technical and practical issues involved in valuation are discussed, with a focus on regulatory and tax considerations and special assignments such as acting as an expert witness. Examples from the SME sector through to publicly-listed firms will be considered.

This subject builds on the knowledge obtained in Fundamentals of Asset Valuation (FIN202) and Business Valuation (FIN205) and therefore assumes prior knowledge of valuation methodologies. It focuses on the application of business valuation techniques in the broader context of conducting a valuation assignment rather than focussing on the valuation of particular assets or securities.

This subject contributes to the ICAA Business Valuation Specialisation.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Explain the role of a valuer and the skills and experience required in different valuation contexts.
      2. Discuss the technical and practical issues that arise in valuations.
      3. Determine the appropriate methodology for your purpose in carrying out a business valuation or appraisal assignment.
      4. Discuss the information gathering process and strategies for managing the absence of information.
      5. Outline the steps in the valuation process and the essential content of valuation documentation.
      6. Apply regulatory and Accounting Professional and Ethical Standards requirements to expert reports and business valuations.
  • Subject content
    • Topic Title
      Topic 1 The purpose and scope of valuation
      Topic 2 Review of valuation methodologies
      Topic 3 Gathering information
      Topic 4 The valuation process
      Topic 5 The valuation report
      Topic 6 Meeting the requirements of APES 225
      Topic 7 Taxation issues
      Topic 8 Special assignments
      Topic 9 Business appraisal
      Topic 10 Managing the valuation practice
  • Assessment
  • Prerequisites
  • Reading list
    • Prescribed text

      • Hayes G. 2013, A practical guide to business valuations for SMEs, CCH Australia Ltd, ISBN 9781921948411

      Retailers of educational books include Co-op Bookshop and Boffins Bookshop. Texts can also be borrowed from the Kaplan library or other libraries. Details of required and further reading are provided in the subject room.  Purchase of any text other than a prescribed text is not required.