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      Impairment test & valuation of investments

      KPMG Impairment Test is a web-based solution designed for efficient and precise analysis of impairment in accordance with IFRS and HGB standards. Developed by our valuation experts, this tool provides structured and quality-assured guidance for the goodwill or asset impairment test under IAS 36 and the valuation of investments in accordance with IDW RS HFA 10 standards.

      In just a few steps, the tool guides the user swiftly and reliably through a structured analysis process: from the integrated derivation of cost of capital to automated reporting. All calculations are based on the requirements of current standards, eliminating the need for time-consuming maintenance of Excel valuation models. The tool can be customized to your specific needs, and our valuation experts can additionally support the analysis process.

      All the benefits at a glance

      • Collaborative working

        Project-based collaboration with multiple team members on a digital platform

      • Integrated cost of capital

        Cost of capital derivation based on monthly updated and quality-assured data, including over 21,000 peer companies

      • Transparent process

        Intuitive workflow with flexible adjustments and a clear result presentation ensure transparency

      • Efficient analyses

        Perform impairment tests in just a few steps with integrated data upload and automated documentation

      • Compliance with standards

        Reliable results through a quality-assured process in line with latest regulatory standards

      Available functions

      • Selection of accounting standards (HGB / IFRS)

      • Integrated cost of capital derivation

      • Sensitivity analyses

      • Interface for uploading the business plan

      • Analysis of value drivers

      • Automated reporting tool

      • Customizable documentation of results

      • Coming soon: Bridging values between reporting dates

      Product Presentation

      Learn more about impairment analysis with KPMG Impairment Test.

      Wolf in the snow

      Insights into the digital impairment test

      Peer group search and selection using tailored filters Peer group search and selection using tailored filters

      Derivation of peer-group-specific cost-of-capital parameters Derivation of peer-group-specific cost-of-capital parameters

      Presentation of the value range from the Goodwill Impairment Test Presentation of the value range from the Goodwill Impairment Test

      Working capital analysis using historical and forecast data Working capital analysis using historical and forecast data

      Presentation of the sensitivity and scenario analysis of the headroom Presentation of the sensitivity and scenario analysis of the headroom

      Reporting on the goodwill impairment test Reporting on the goodwill impairment test

      Questions regarding the performance of impairment tests

      KPMG Impairment Test is a web-based solution for the efficient and precise performance of impairment tests in accordance with German (HGB) and international accounting standards (IFRS). The digital tool enables users to perform both a goodwill or asset impairment test in accordance with IAS 36 and an investment valuation in accordance with IDW RS HFA 10 standards. The quality of the data and calculations are ensured by our KPMG valuation experts, and they meet the requirements of the current standards.

      With a structured and user-friendly interface, KPMG Impairment Test enables the efficient and standardized performance of impairment tests in just five clear process steps. The tool guides you in a targeted manner from data upload to impairment analysis and automated reporting. Thanks to the Excel template provided, the business plan can be loaded directly into the tool via an upload process. With the integrated capital cost derivation, companies can incorporate their current capital cost parameters into their analysis results from a selection of over 21,000 peer group companies. In the final step, an automated report based on the selected calculation and parameter settings is prepared, ready to be forwarded to the auditor.

      To ensure quality-assured performance of the impairment test, the tool has extensive analysis options in accordance with KPMG valuation standards. Thanks to the integrated corporate planning, users can quickly identify the impairment test valuation results and any potential impairment losses. To increase the quality of results, the development of various input parameters can be tracked in further comprehensive financial analyses. Sensitivity analyses visualize the effects of various planning assumptions in tables and diagrams. The provision of the three reconciled cash flow approaches (free cash flow, total cash flow and flow-to-equity) also ensures a quality-assured calculation.

      Creating a report for the auditor that meets the requirements can be time-consuming. With the integrated reporting function, KPMG Impairment Test offers automated and at the same time customizable documentation of results for the respective assessment. This can be downloaded in conjunction with the detailed documentation in PowerPoint or Excel format and forwarded to the auditor. The integrated reporting function not only saves time when creating the required documentation, the ready-made report structure and detailed presentation also simplifies communication of the results to the auditor.

      Use of the digital tool is not permitted for KPMG audit clients.

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