The merger of two meat processors required a valuation of the meat processing machinery for IFRS financial reporting.
Post regulatory approval, Dawn Meats acquired the business and assets of Dunbia Meats. As a result, FRS 102 required the purchase price to be allocated between tangible and intangible assets and goodwill at fair value.
The beef and lamb slaughter, de-boning and retail processing machinery and equipment plus lairage, chilled storage and effluent treatment plant, totaling over 5,000 assets and located at 3 locations, were all inspected.
Detailed analysis of the fixed assets was performed to calculate fair values. An obsolescent penalty was included to reflect changes in refrigerant regulations resulting in asset retirement and reinvestment.
Our valuation was reviewed and accepted by the company’s Big-4 auditor before being incorporated into Dawn Meats balance sheet.