EY Global Delivery Services ( EY GDS) Team Manager Interview Questions and Answers

IFRS 15 outlines five steps for revenue recognition

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue when (or as) the entity satisfies a performance obligation

DCF valuation is a method used to estimate the value of an investment based on its expected future cash flows.

• Discounted Cash Flow (DCF) valuation involves forecasting future cash flows of an investment and discounting them back to present value using a discount rate.

• It is commonly used in finance to determine the intrinsic value of a company or asset.

• DCF valuation helps investors make informed decisions about whether an investment is undervalued or overvalued.

• Example: If a c...read more

Valuing a business involves analyzing its financial statements, market position, growth potential, and industry trends.

• Consider the company's revenue, profits, and assets to determine its financial health.

• Evaluate the market demand for the company's products or services.

• Assess the company's competitive position and market share.

• Factor in the potential for future growth and expansion.

• Compare the business to similar companies in the industry to determine its relative value.

IFRS 16 assessment for leases

• IFRS 16 is a new accounting standard for leases

• It requires lessees to recognize all leases on their balance sheet

• Lessees must assess whether a contract contains a lease

• IFRS 16 impacts financial statements and key performance indicators

• Companies must ensure compliance with the new standard

Valuation techniques are methods used to determine the value of a company or asset.

• Comparable company analysis (CCA)

• Discounted cash flow (DCF) analysis

• Asset-based valuation

• Earnings multiple approach

• Liquidation valuation