LSP Valuation For Property and Hotels Business
Valtech’s valuation team has recently completed a valuation in relation to the long service payments (LSP) of a property and hotels businesses in Hong Kong.
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.
Our dedicated team actively assists in LSP valuation, ensuring accurate assessments tailored to our client’s needs. Benefit from hands-on support in data collection and expert analysis, empowering your decision-making. Valtech Valuation is a preferred choice for precise and strategic LSP valuation in Hong Kong’s dynamic labor market.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.
