Neftaly IFRS Valuation Standards

At Neftaly, our approach to valuation is fully aligned with the International Financial Reporting Standards (IFRS), ensuring that all assessments of asset, liability, and business values are transparent, consistent, and globally recognized. Our methodology combines rigorous analysis, market intelligence, and compliance with IFRS frameworks to support decision-making for investors, stakeholders, and management teams.

Key Principles

1. Fair Value Measurement
   • Neftaly adheres to IFRS 13, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
   • Our valuations are based on observable market data wherever possible, supplemented by robust modeling techniques when market inputs are limited.
2. Consistency and Transparency
   • Valuations are performed consistently across periods, ensuring comparability of financial statements.
   • Neftaly provides detailed disclosure reports outlining the assumptions, inputs, and methodologies applied, in accordance with IFRS requirements.
3. Market-Based Approach
   • We prioritize market-based evidence in determining value, leveraging comparable transactions, industry benchmarks, and market trends.
   • When market data is unavailable, we apply income and cost approaches, carefully documenting assumptions and sensitivities.
4. Hierarchy of Inputs
   • Following IFRS 13, our valuations classify inputs into three levels:
     • Level 1: Quoted prices in active markets for identical assets/liabilities.
     • Level 2: Observable inputs other than quoted prices, such as quoted prices for similar assets.
     • Level 3: Unobservable inputs, requiring significant professional judgment.
   • Neftaly clearly indicates the level applied for each valuation, ensuring clarity and audit readiness.
5. Ongoing Review and Adjustments
   • Valuations are reviewed periodically to reflect changes in market conditions, company performance, and relevant IFRS updates.
   • Adjustments are carefully documented to maintain transparency and reliability in financial reporting.

Applications of IFRS Valuation at Neftaly

• Investment Analysis: Accurate valuation of equity, debt, and hybrid instruments to support investment decisions.
• M&A Transactions: Independent and defensible valuations to guide acquisition, merger, and divestiture strategies.
• Financial Reporting: Ensuring compliance with IFRS for balance sheet and income statement reporting.
• Risk Assessment: Valuation insights for hedging, impairment testing, and scenario planning.

Why Choose Neftaly?

• Expertise: Our team of valuation professionals has deep experience applying IFRS across diverse sectors.
• Independence: Neftaly delivers unbiased valuations, ensuring credibility with investors, auditors, and regulators.
• Technology-Enabled: We leverage advanced analytics and digital tools to enhance accuracy, traceability, and reporting efficiency.
• Global Standards, Local Insight: While fully compliant with IFRS, our approach incorporates local market knowledge to provide realistic, actionable valuations.