LSP Valuation of Publishing Company

Valtech’s valuation team has recently completed a valuation in relation to the long service payments (LSP) of a publishing company.

Following the abolition of the Mandatory Provident Fund offsetting arrangement, companies engaged in labor-intensive industry are likely to recognize significant defined benefits obligations (DBO) and related payments in their financial statements under the new legislation. The calculations behind can be quite complicated, especially  when the employee data is largely diversified with different age groups and employment statuses. Valtech’s valuation team can help our clients to quantify the LSP obligations on a systematic and reasonable basis using our internally developed LSP valuation model.

For LSP valuation, various company-specific policies can influence the results. For example, some companies may have an early retirement policy that allows employees to retire before 65 while still being entitled to LSP payments. Some companies may provide voluntary MPF contributions or gratuities for their employees. These are significant factors in the LSP valuation. For this case, we worked closely with our client and their auditor to identify all potential issues early, ensuring that our model considered all related company policies and company-specific factors in the valuation. We are glad that we successfully assisted our client to complete the LSP valuation for their financial reporting purposes in a timely manner.

Why Appoint Valtech as Valuation Adviser?

Valtech’s team has provided valuation advice to over 200 listed companies in Hong Kong, China, Singapore, Taiwan, Australia, the United Kingdom, the United States and Germany.

Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The financial market and valuation requirements are highly dynamic. We are determined to develop and maintain a quality management system to foster an environment which is sustainable and evolving continuously. Our founders stress on development of a system and an environment that our consultants are provided with necessary support and opportunities to thrive.

We are a team of professionals from multiple disciplines including audit, financial modelling, tax, internal control and surveying. Our management adheres professional excellence. Abundant resources are reserved to develop standardized policies and procedures for quality control. We have solid track record in valuation advisory for listed companies, private equity, fund managers and financial institutions. We work closely with big four and other international accounting firms, corporate financial advisors, fund managers and legal advisors.

Valtech Advantages:

Advanced Valuation Techniques: Valtech Valuation can develop and implement advanced valuation techniques that are specifically tailored to the needs of clients. These techniques can go beyond traditional valuation methods and incorporate factors such as market trends, industry benchmarks, and risk analysis to provide more accurate and insightful valuations.

Customized Valuation Models: Valtech Valuation can create customized valuation models that align with the unique investment strategies and asset classes. By understanding the specific requirements and objectives of these entities, Valtech Valuation can develop models that capture the nuances of their portfolios, resulting in more precise and relevant valuations.

Data-driven Insights: Valtech Valuation can leverage its access to comprehensive data sources and analytics tools to provide data-driven insights. By analyzing market data, economic indicators, and performance metrics, Valtech Valuation can offer valuable insights into the valuation of assets, identify emerging trends, and help inform investment decision-making.

Adherence to Compliance and Reporting Standards: Valtech Valuation can ensure that valuation practices adhere to regulatory compliance and reporting standards. By staying updated on relevant regulations, such as accounting standards and industry guidelines, Valtech Valuation can help clients meet their reporting obligations accurately and in a timely manner.