Course 2025-2026 a.y.

The main topics covered by the course are the following: Relationship between accounting and market values. Analysis of the main techniques for estimating the cost of capital and the related critical issues on a methodological and application level. Valuation criteria, with a particular focus on those based on accounting figures: the Residual Income Model and Abnormal Earnings Growth. Impairment test based on IAS 36. Recoverable amount estimate based on income and market approach. Identification of the intangible assets of the acquiree and estimation of the related Fair Value for the purposes of allocating the acquisition price following a business combination, in accordance with the provisions of IFRS 3. Valuation Standards.

• Identify valuation assumptions consistent with IAS 36 accounting standard for impairment test purposes;
• Assess the consistency of cost of capital and growth assumptions with expected cash flows;
• Apply income and market approach valuation criteria to determine the recoverable amount of a CGU;
• Perform valuation sanity checks;
• Detect the presence of an intangible asset and assessing its role within the PPA process as PIGA or contributory asset;
• Estimate the value of intangible assets by applying the most appropriate valuation criteria (based on Market, Income and Cost approach);
• Analyze customer relationship attrition rates to develop survivor curves to be used as inputs for income based valuation criteria;
• Consistently apply advanced Excess Earnings criteria for valuation of intangible assets;
• Reconcile impairment test and PPA valuations with different premise of values.

• Measure the cost of capital for valuations required for financial reporting purposes.
• Determine which intangible assets are acquired in a business combination and how to estimate their remaining useful lives.
• Apply best practices for measuring the fair value of intangible assets acquired in a business combination.
• Estimate the value in use of intangible assets and goodwill for the purposes of impairment testing (IAS 36).
• Develop the critical thinking skills necessary to analyze and understand the valuations presented in documents prepared by companies and/or third parties (consultants, auditors, etc.).

• Lectures

Face-to-face lectures

The final evaluation of students will be based exclusively on the results obtained in the partial written exams (weight 50% for each partial exam) or in the general written exam.
Students will be able to take two partial intermediate tests covering the first and, respectively, the second part of the program, as defined in the detailed class syllabus. Admission to the second partial test is subject to obtaining a sufficient grade (18/31) in the first partial test.
Students who have not carried out or obtained a sufficient grade in the first partial test or who, having passed it, intend to renounce the grade of the same, must compulsorily register for the final "general" exam which covers the entire program of the course.
 

Slides and the material uploaded to Bboard during the course are considered required materials.

Suggested Readings:

• First section of the course:

Pinto J.E., Henry E., Robinson T.R., Stowe J.D., Equity Asset Valuation, John Wiley & Sons, New Jersey, 2015.

• Second section of the course:

M.L.Zyla, "Fair Value Measurement: practical guidance and implementation, 3rd Ed.", Wiley