LATEST NEWS

Discount rates down, impairment in focus, resources

December 2019 discount rate update

Discount rates down, impairment in focus

December 2019 discount rate update – our latest article on how to assess your discount rates identified that:

  • Impairment testing and asset values continue to be one of the key focus areas for ASIC in relation to the 31 December 2019 reporting period, with many businesses applying more rigour in their assessment of discount rates.
  • The cost of capital has declined over the period due to a reduction in the equity market risk premium (EMRP) and credit spreads. All other things being equal, this will lead to higher asset values.
  • It’s increasingly important for businesses to understand and be able to justify changes that are occurring in their projected cash flows and WACC as well as ensuring cross-checks to market metrics (such as market capitalisation and EBIT multiples) are undertaken where observable.

Click here to find out more.

Questions?

If you would like to discuss discount rates, impairment, or any other valuation related matter, please feel free to contact us.

OTHER NEWS

Discount Rate 31 Dec 2023

Market Discount Rates – 31 December 2023

Optimism around the easing of inflation and potential interest rate cuts led to a rally in equity markets towards the end of December 2023. With markets continuing to fluctuate significantly, the selection of a reasonable discount rate remains a key consideration, whether for the purpose of financial reporting or for any valuation analysis.

Discount rate September 2023

RISING MARKET DISCOUNT RATES

Markets have declined over the last quarter as persistent inflation and the potential for further rate rises continue to weigh on the ASX 200. These fears have seen a rapid increase in government bond yields over the last month. With market conditions continuing to evolve rapidly, we have provided an update on our assessment of discount rates as at 30 September 2023.

Simon Dalgarno celebrates 25 years

25 Years at Leadenhall: Simon Dalgarno celebrates

After 25 years at Leadenhall (and in the valuation profession) Simon Dalgarno was lucky enough to have the entire month of May off as leave. During his time off, he went on a pilgrimage – which was both professional and personal.

Contact us
E. office@leadenhall.com.au

Sydney office
A: Level 6, 111 Elizabeth St Sydney NSW 2000
P: +61 416 152 823

Adelaide office
A: Level 4, 33 Franklin Street, Adelaide SA 5000
P: +61 416 003 737

© 2024 Leadenhall Valuation Services Pty Ltd • ABN 87 619 798 926

Twitter Linkedin

Liability limited by a scheme approved under Professional Standards Legislation

© 2024 Leadenhall Valuation Services Pty Ltd • ABN 87 619 798 926
Liability limited by a scheme approved under Professional Standards Legislation

Twitter Linkedin