autobiz: the first car valuation company to meet IFRS13 standards
International financial standards have been tightened after the financial crisis of 2008, especially for the valuation of vehicle inventories of manufacturers and short- and long-term rental companies. After a specialised audit, autobiz has become the first car valuation company to comply with IFRS13.
IFRS, the International Financial Reporting Standard, establishes the international accounting standards used by all major corporations, publicly traded or not. They are applied in more than a hundred countries around the world. These rules, which aim to create a uniform and transparent accounting system, were significantly strengthened following the financial crisis of 2008. Among adopted measures, IFRS 13 was issued in 2011 to define the principle of “fair value” for an asset.
This notion is of crucial importance for the automotive sector. Indeed, any entity with vehicles on their balance sheet must be able to account for their fair value. All the main players in the automotive industry are concerned: manufacturers, distributors, short- and long-term rental companies and insurers.
Since its creation in 2004, one of autobiz’s main objectives has been to offer a fair value for any vehicle, based on big data, machine learning and transparent online market analysis.
With this in mind, autobiz commissioned Chappuis Halder to assess the “degree of reliability, sincerity, transparency and auditability” of its valuation methodology.
In its analysis, the consulting firm, a leader in IFRS compliance, found the method to be relevant and effective. Indeed, Chappuis Halder confirms that the autobiz valuation solutions comply with IFRS 13.
The report revealed in particular that:
autobiz pricing models are based on a regularly updated database built by retrieving used-car selling prices from ads on specialised sites. autobiz, therefore, provides an estimated market value that meets IFRS standards as well as the necessary transparency via the supporting data for this value.
autobiz uses mathematical principles as well as Machine Learning techniques to deliver vehicle value as accurately as possible, in terms of current market value.
Finally, autobiz’s valuation method is supported by a database of more than 10 billion observed prices, providing the accuracy and precision required by international accounting standards.
Emmanuel Labi, CEO of autobiz, explains,
The fact that it is the only IFRS13-compatible valuation solution today is recognition of the high quality of the everyday work of the over 40 people who make up our Big Data and Algorithmics teams. For us, this respect for standards is also an essential element in our partnerships with the key account clients that we support in 23 countries in Europe.
Since 2004, autobiz has been supporting all European players in the automotive industry with trade-in and trade-in solutions. This support is based on 19 years of data history as well as web, software, and the business know-how of the company’s 280 employees. Today based in La Défense (92), autobiz also has offices in Berlin, Valencia (Spain) and Milan. autobiz assists more than 20 leaders in used remarketing (manufacturers, bankers, leasers, bidders…) as well as 5,000 points-of-sale in 22 countries across Europe.