Fair Value Measurement for Financial Reporting

Fair Value Measurement for Financial Reporting

In a situation of increasingly complex fair value reporting standards and more stringent regulatory scrutiny, we assist clients in efficiently resolving financial reporting valuation issues. We can assist clients to prepare fair value measurements in accordance with IFRS, HKFRS, US GAAP or other accounting requirements.

We have the capability and experience to serve a full range of fair value valuation needs, providing valuation opinions that can satisfy the scrutiny of auditors and relevant regulatory bodies.

(i) Purchase Price Allocation

We provide independent valuation assessment on the fair value of intangible assets acquired in business combinations.

Typical intangible assets include:

  • Brand name/trademark
  • License
  • Franchise agreement
  • Customer relationship
  • Order backlog
  • Non-compete agreement
  • Patented or unpatented technology
  • Operating right
  • Internet domain name

(ii) Impairment Testing Analysis

We provide independent impairment assessment to help clients test and measure potential impairments of tangible and intangible assets including goodwill.

(iii) Portfolio Valuation

We provide portfolio valuation services for private equity firms, venture capital firms, financial institutions, insurance companies and asset management arms of corporations or organizations. Our services include the valuation of:

  • Preferred share or ordinary share
  • Secured and unsecured debt instrument
  • Option, warrant, convertible bond as well as other derivatives

(iv) Expected Credit Loss Assessment

We support clients to assess the expected credit loss of the financial assets, such as trade receivables, other receivables and loan receivables, in accordance with the requirement of HKFRS 9 or IFRS 9 Financial Instruments.

(v) Long Service Payment Obligation Valuation

We support clients in assessing the Long Service Payment obligation in accordance with the requirement of HKAS 19 under the abolition of the MPF-LSP offsetting mechanism.

Back