Valuations & Covid-19
The Covid-19 outbreak, although foremost a sanitary crisis, has brought the global economy to an unprecedented stop. With more than half of the world’s population (and businesses) in lockdown for several months and limited movement of people (locally and globally), this has impacted almost every business operation severely, with some more than others including facing situations of insolvency/bankruptcy.
Both demand and supply shocks are being felt across the world on an aggregate basis. With the current backdrop, the value placed on assets (real or financial) would be subject to uncertainty. Uncertainty in the valuation process, whether be it for financial reporting purposes (fair valuation or impairment testing) or transactional purposes (i.e. sale between identified buyer and seller), needs to be adequately identified and considered in valuations. We highlight below some of the key factors which could be subject to uncertainty in the below document.
Contacts
Sandiren Ramsawmy Audit Partner - Port Louis
