Our valuations for financial reporting purpose aim at supporting your audits of the financial reports in accordance to the various Hong Kong Accounting Standards (“HKAS”) or Hong Kong Financial Reporting Standards (“HKFRS”). Many of our team members are holders of Certified Public Accountants. We are well equipped with the latest accounting knowledge and practices to facilitate efficient communication and coordination with your external auditors. We have good understanding on how our valuations can fulfill the audit requirements.
Purchase Price Allocation (“PPA”) – IFRS3 / HKFRS 3
- Identify the Intangible Assets with reference to the recognition criteria stated in HKAS 38
- Construct business models, assess the Internal Rate of Return and Weighted Average Return on Assets
- Perform Reasonableness Check on the recognized Goodwill or Gain from Bargaining Purchase via Business Valuation
- Valuation of Contingent Consideration – HKFRS 3
- Valuation of Financial Asset and Financial Liabilities, e.g. Profit Guarantee – HKFRS 9
Goodwill Impairment – IAS 36 / HKAS 36
- Identify the Cash Generating Unit (“CGU”). It is essential to match the coverage of the valuation model with the asset composition of the CGU under financial reporting. Our specialists, who are experienced in both auditing and valuation, provide comprehensive advice on how the CGU valuation can fulfill the HKAS and HKFRS requirements
- Identify the cash flow generated from the CGU. Our specialists assist the management to identify and isolate the cash flow stream relevant to the CGU for the valuation purpose.
- Measure the recoverable amount of the CGU, including 1) Fair Value assessment and 2) Value-in-Use assessment.
Portfolio Investments – IFRS 9 / HKFRS 9
- Historically, private fund general partners and limited partners might take the investment cost to form the Net Asset Value (“NAV”) basis of their illiquid positions, and no subsequent NAV re-measurements are conducted until investment exits or fund liquidations. However, from 1 January 2018 onwards under IFRS 9, the historical cost is no longer allowed as a prudent proxy for fair value determination. Fund managers and investors shall be aware of the critical impact of IFRS 9 on their books and fund performance.
Asset & Intangible Asset Impairment – IAS 36 / HKAS 36
- Inventories – HKAS 2. Our valuation is performed to assist the auditors in the determination of net realizable value.
- Biological Assets – HKAS 41. Our Valuation is supported by the advice from our Biological Asset Expert Team on the biological attributes including but not limited to Species, Specifications, Health Conditions, Quality, Age, Life Span, etc.
Valuation Model Review and Validation
- Our team provides flexible solutions to management and auditors. Our review services can be tailored and performed either under an agreed-upon procedure on components, such as valuation methodology, major assumption parameters, calculation flows, discount rate, or under an one-stop full package.
Intangible Asset Valuation
- Intangible Assets – HKAS 38. Our valuation experience covers various types of intangible assets including but not limited to: Trademarks, Brand Name, Mining Right, Concession Right, Technical Know-how, Franchise Agreement, Copyright, Domains, Backlog Sale, Customer Relationships, Distribution Networks, Non-competition Agreement, Licenses, Patent, Software, Management Team etc
