The document discusses various types of financial asset valuation including employee subscription rights, convertible bonds, redeemed preferred stock, and guarantee contracts. It provides definitions for each type of asset and describes the appropriate valuation methods. For employee subscription rights, convertible bonds, and redeemed preferred stock, the income approach using binomial option pricing or discounted cash flow models are recommended. Guarantee contracts should be valued using binomial option pricing based on the enterprise's credit rating. The document emphasizes collecting data, performing site inspections, submitting valuation reports, and following up when conducting valuations.
Recruitment company share price analysis - Q1 2014Marcus Panton
Recruitment company share price analysis, Q1 2014. A simple analysis showing the performance of 12 recruitment companies share prices since Lehmans filed for bankruptcy in Sept 2008. Companies in this analysis are: SThree, Hydrogen, Michael Page, Harvey Nash, Robert Walters, Robert Half, Hays, MatchTech, Interquest, Adecco, Manpower and Randstad
The document discusses International Financial Reporting Standards (IFRS). It provides information on the International Accounting Standards Board (IASB), the conceptual framework underlying IFRS, and the concept of a "chromosome of valuation" to represent the valuation options a company chooses for assets and liabilities under IFRS standards. The conceptual framework addresses the objectives of financial statements, qualitative characteristics of useful financial information, and definitions of elements such as assets, liabilities, income, and expenses.
Este documento describe una situación de aprendizaje basada en la didáctica crítica para estudiantes de enfermería sobre el metabolismo de los carbohidratos. La lección se divide en tres momentos: la apertura presenta conceptos básicos y una situación clínica real; el desarrollo implica que los estudiantes investiguen la condición del paciente y relacionen sus hallazgos con procesos bioquímicos; el cierre incluye que los estudiantes analicen sus resultados y reflexionen sobre lo aprendido. La didáct
Este documento presenta una agenda y herramientas para la rotación de grupos y aulas especializadas. Explica la estructura pedagógica con énfasis en mapas conceptuales como estrategia de aprendizaje significativo, y propone su aplicación gradual en la sesión de clase utilizando guías que apoyen la lectura y escritura.
Un mapa conceptual es una técnica gráfica para representar información a través de conceptos vinculados. Existen diferentes tipos de mapas conceptuales como panorámicos, detallados, jerárquicos, de araña, de organigrama y sistémicos que se diferencian en su estructura y organización de los conceptos.
The document discusses the importance of establishing a formal purchasing process for businesses. It outlines the typical steps in a purchasing cycle, including needs analysis, purchase requisition, purchase order review, requests for proposals, contract negotiation, shipping/receiving, invoice approval, and accounting updates. Implementing best practices for purchasing can help reduce waste, risks, and expenses while improving efficiency, profits, and value. A well-defined process is key to optimal supply chain management, cost savings, and auditability.
The document discusses the basics of business valuation, including defining valuation as determining the economic value of a business. It outlines several methods of valuation such as income-based approaches like discounted cash flow analysis and market-based approaches like comparable company analysis. The document also explains why valuation is important for mergers, acquisitions, disputes, and other scenarios. Key considerations in the valuation process are discussed such as justifying assumptions, accounting practices, and intangible assets.
This document is a project report submitted by Hilal A to Rajadhini Business School in April 2015 on analyzing receivables management at Travancore Titanium Product Limited. It includes an introduction outlining what receivables are and their importance. It then discusses instruments used for receivables, purposes of maintaining receivables, factors affecting receivables size, and costs associated with maintaining receivables. The document also includes declarations, acknowledgements, contents, tables and charts sections.
Recruitment company share price analysis - Q1 2014Marcus Panton
Recruitment company share price analysis, Q1 2014. A simple analysis showing the performance of 12 recruitment companies share prices since Lehmans filed for bankruptcy in Sept 2008. Companies in this analysis are: SThree, Hydrogen, Michael Page, Harvey Nash, Robert Walters, Robert Half, Hays, MatchTech, Interquest, Adecco, Manpower and Randstad
The document discusses International Financial Reporting Standards (IFRS). It provides information on the International Accounting Standards Board (IASB), the conceptual framework underlying IFRS, and the concept of a "chromosome of valuation" to represent the valuation options a company chooses for assets and liabilities under IFRS standards. The conceptual framework addresses the objectives of financial statements, qualitative characteristics of useful financial information, and definitions of elements such as assets, liabilities, income, and expenses.
Este documento describe una situación de aprendizaje basada en la didáctica crítica para estudiantes de enfermería sobre el metabolismo de los carbohidratos. La lección se divide en tres momentos: la apertura presenta conceptos básicos y una situación clínica real; el desarrollo implica que los estudiantes investiguen la condición del paciente y relacionen sus hallazgos con procesos bioquímicos; el cierre incluye que los estudiantes analicen sus resultados y reflexionen sobre lo aprendido. La didáct
Este documento presenta una agenda y herramientas para la rotación de grupos y aulas especializadas. Explica la estructura pedagógica con énfasis en mapas conceptuales como estrategia de aprendizaje significativo, y propone su aplicación gradual en la sesión de clase utilizando guías que apoyen la lectura y escritura.
Un mapa conceptual es una técnica gráfica para representar información a través de conceptos vinculados. Existen diferentes tipos de mapas conceptuales como panorámicos, detallados, jerárquicos, de araña, de organigrama y sistémicos que se diferencian en su estructura y organización de los conceptos.
The document discusses the importance of establishing a formal purchasing process for businesses. It outlines the typical steps in a purchasing cycle, including needs analysis, purchase requisition, purchase order review, requests for proposals, contract negotiation, shipping/receiving, invoice approval, and accounting updates. Implementing best practices for purchasing can help reduce waste, risks, and expenses while improving efficiency, profits, and value. A well-defined process is key to optimal supply chain management, cost savings, and auditability.
The document discusses the basics of business valuation, including defining valuation as determining the economic value of a business. It outlines several methods of valuation such as income-based approaches like discounted cash flow analysis and market-based approaches like comparable company analysis. The document also explains why valuation is important for mergers, acquisitions, disputes, and other scenarios. Key considerations in the valuation process are discussed such as justifying assumptions, accounting practices, and intangible assets.
This document is a project report submitted by Hilal A to Rajadhini Business School in April 2015 on analyzing receivables management at Travancore Titanium Product Limited. It includes an introduction outlining what receivables are and their importance. It then discusses instruments used for receivables, purposes of maintaining receivables, factors affecting receivables size, and costs associated with maintaining receivables. The document also includes declarations, acknowledgements, contents, tables and charts sections.
The document discusses acquiring an established business venture through purchasing an existing business. It notes that buying an existing business can represent less risk than starting a new business from scratch. However, one must perform due diligence to understand the terms of the purchase. The document provides advice on evaluating business opportunities and established ventures through examining financial records, operations, competition, and viability factors. It also discusses different business valuation methods like asset-based, earnings-based, and market-based approaches.
The document discusses pricing policies and methods. It outlines several factors that influence pricing decisions, such as demand, costs, competition and government policies. It then describes various pricing objectives, strategies, and methods that can be used, including cost-plus pricing, peak load pricing, penetration pricing, and price skimming. The key objectives of pricing policies are to maximize profits, promote long-term business welfare, and adapt prices to diverse competitive situations.
This document provides a business valuation for ABC Company as of January 3, 2013. The valuation was prepared by Brian S. Mazar of American Fortune Business Valuation for John R. Smith, the owner of ABC Company. The valuation considers income, market, and asset approaches to estimate the fair market value of ABC Company at $2,875,491. Certain portions of the full valuation report are encrypted for the client's exclusive use. The valuation is provided for informational purposes only and should not be used to defend the valuation with other parties without an intermediate or comprehensive report.
Revaluation of fixed assets involves adjusting the recorded value of a company's capital goods like machines, buildings, and patents to reflect their true market value. This is distinct from regular depreciation which ties asset value decline to age. Reasons for revaluation include showing accurate rates of return, maintaining adequate replacement funds, and negotiating fair sale prices. Common revaluation methods include indexation against cost inflation, appraising current market prices, and hiring experts. Any increase in value is recorded in a revaluation reserve rather than profits to avoid overstating earnings.
This document provides a business valuation for ABC Company prepared by American Fortune Business Valuation for John R. Smith, the owner of ABC Company. The valuation estimates the fair market value of ABC Company as of January 3, 2013 to be $2,875,491. The valuation considers income, market, and asset approaches and adjusts the company's financial statements to eliminate discretionary expenses and non-operating items in order to determine normalized cash flows. Certain portions of the full valuation report are encrypted for the client's exclusive use.
. Strategic Sourcing Contingent upon the business and industry, the articulations "sourcing," "purchasing" and "procurement" might be utilized correspondingly to depict the capacity of getting supplies and managing the interaction, with sourcing considered more strategic, and purchasing and procurement used to suggest the genuine functional capacity.
This document discusses integrated financial supply chain management for a coal mining company. It covers the physical and financial supply chains involved in coal production and sales. The financial supply chain management of a coal company consists of three main components: the procure-to-pay cycle, working capital management, and the order-to-cash cycle. It describes the key processes involved in each component, such as vendor selection, purchase orders, receiving, invoicing, and accounts receivable/payable. The goal is to efficiently manage cash flow, inventory, and relationships with suppliers/customers.
Valuation & Financial Re-organization
This document provides contact details for valuation services at IndiaCP and outlines an upcoming business leadership program on valuation. It discusses what valuation is, key concepts like value vs price and the difference between transactions and valuations. It covers standard valuation approaches like income, asset and market approaches. It also discusses valuation methodologies, factors considered, and regulatory contexts where valuation is required in India like for the Reserve Bank of India, Income Tax, and SEBI.
The document provides an overview of valuation concepts, principles, standards and processes. It defines key terms related to valuation such as standard of value, premise of value, fair market value. It discusses valuation approaches like market, income and cost approach and methods under them such as comparable companies method. It summarizes the Indian Valuation Standards for valuations in India.
This document provides an overview of business valuation. It discusses the common reasons valuations are performed, including buying/selling a company, estate planning, financing, and litigation. The accepted valuation methodologies are also reviewed, including the income approach using discounted cash flow and capitalization of cash flows methods, market approach using comparable companies and precedent transactions, and asset-based approach. Key valuation concepts like standards of value, levels of value, and determining discount rates are also summarized.
Puregold Price Club, Inc. is a retail company operating hypermarkets that provide a one-stop shopping experience. The company aims to be the most customer-oriented retailer offering best value. It seeks to establish relationships with suppliers and partners while promoting employee development. The document outlines the company profile, vision, mission, values, and board members. It also describes the audit objectives for expenses, including procedures to validate payroll, rent, utilities, repairs and maintenance, and insurance expenses are accurate and comply with policies.
This document provides information on various business concepts including invoices, bills, purchase orders, customer orders, inventory control, checks, reorder levels, and return on investment. An invoice is a document from a seller to a buyer listing the products, quantities, and agreed prices that have been provided. A purchase order is an offer from a buyer to a seller specifying the types, quantities, and agreed prices of products or services. Inventory control involves supervising supply levels to ensure adequate but not excessive amounts of items. A reorder level is the inventory amount at which a new order is placed. Return on investment is a performance measure that evaluates investment efficiency by dividing net profit by cost of investment.
John Cronje has over 30 years of experience in financial management roles in the mining industry. He is currently the Group Financial Manager and Financial Manager of Witkop Fluorspar Mine (Pty) Ltd. He holds a B Com degree from Rhodes University and certificates in mining from Wits Business School and Katelego Fela Consulting. His responsibilities in his current role include financial reporting, budgeting, cash flow management, procurement, production cost control, and ensuring compliance. Prior to his current role, he held financial management positions of increasing responsibility with various gold and copper mining companies.
- Ind AS 115 replaces existing revenue standards and provides a single comprehensive model for revenue recognition. It is effective for annual periods beginning on or after April 1, 2018.
- The key change under Ind AS 115 is the requirement to recognize revenue when a customer obtains control of promised goods or services rather than when risks and rewards are transferred. Control is defined as the ability to direct the use and obtain the benefits from the goods or services.
- Ind AS 115 introduces a five-step model for revenue recognition: 1) identify the contract with the customer, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate transaction price to performance obligations, and 5) recognize revenue when performance obligations are
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on M&A Valuation and challenges at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016. Corporate Professionals acted as the event supporting partner.
• In case of a merger valuation, the emphasis is on arriving at the relative values of the shares of the merging companies to facilitate determination of the swap ratio, hence, the purpose is not to arrive at absolute values of the shares of the companies. The key issue to be addressed is that of fairness to all shareholders. There are established legal precedence for merger valuation methodologies:
• Valuer’s role is to incorporate case specific factors and use appropriate methodologies so as to determine a fair ratio
• Usually, best to give weight ages to valuation by all methods
• Market price method and Earnings methods dominate.
• It is observed that in case of M&A, the Valuations depart from the concept of “Fair Value” as elements like Distress Sale, Desperate Buy, Comparable Transaction Multiples come into play reflecting Price than Value.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Alternative Investment Fund [AIF] are a class of pooled investment funds which invest in venture capital, real estate, private equity, hedge funds, managed futures. In other words, an AIF refers to an investment which is different from the conventional class of assets such as stocks, debt securities, etc. These privately pooled vehicles that collect money from sophisticated private investors who wish to diversify their portfolio and choose alternative modes of investments.
We are a Corporate Compliance organization having our presence across the globe aiming to ease compliance
and assist in business evolution.
✓ We ensure that your business is up to pace with todays hyper-dynamic corporate legal structure(s)
✓ We take care of your compliance, so you can focus on your business.
The document discusses acquiring an established business venture through purchasing an existing business. It notes that buying an existing business can represent less risk than starting a new business from scratch. However, one must perform due diligence to understand the terms of the purchase. The document provides advice on evaluating business opportunities and established ventures through examining financial records, operations, competition, and viability factors. It also discusses different business valuation methods like asset-based, earnings-based, and market-based approaches.
The document discusses pricing policies and methods. It outlines several factors that influence pricing decisions, such as demand, costs, competition and government policies. It then describes various pricing objectives, strategies, and methods that can be used, including cost-plus pricing, peak load pricing, penetration pricing, and price skimming. The key objectives of pricing policies are to maximize profits, promote long-term business welfare, and adapt prices to diverse competitive situations.
This document provides a business valuation for ABC Company as of January 3, 2013. The valuation was prepared by Brian S. Mazar of American Fortune Business Valuation for John R. Smith, the owner of ABC Company. The valuation considers income, market, and asset approaches to estimate the fair market value of ABC Company at $2,875,491. Certain portions of the full valuation report are encrypted for the client's exclusive use. The valuation is provided for informational purposes only and should not be used to defend the valuation with other parties without an intermediate or comprehensive report.
Revaluation of fixed assets involves adjusting the recorded value of a company's capital goods like machines, buildings, and patents to reflect their true market value. This is distinct from regular depreciation which ties asset value decline to age. Reasons for revaluation include showing accurate rates of return, maintaining adequate replacement funds, and negotiating fair sale prices. Common revaluation methods include indexation against cost inflation, appraising current market prices, and hiring experts. Any increase in value is recorded in a revaluation reserve rather than profits to avoid overstating earnings.
This document provides a business valuation for ABC Company prepared by American Fortune Business Valuation for John R. Smith, the owner of ABC Company. The valuation estimates the fair market value of ABC Company as of January 3, 2013 to be $2,875,491. The valuation considers income, market, and asset approaches and adjusts the company's financial statements to eliminate discretionary expenses and non-operating items in order to determine normalized cash flows. Certain portions of the full valuation report are encrypted for the client's exclusive use.
. Strategic Sourcing Contingent upon the business and industry, the articulations "sourcing," "purchasing" and "procurement" might be utilized correspondingly to depict the capacity of getting supplies and managing the interaction, with sourcing considered more strategic, and purchasing and procurement used to suggest the genuine functional capacity.
This document discusses integrated financial supply chain management for a coal mining company. It covers the physical and financial supply chains involved in coal production and sales. The financial supply chain management of a coal company consists of three main components: the procure-to-pay cycle, working capital management, and the order-to-cash cycle. It describes the key processes involved in each component, such as vendor selection, purchase orders, receiving, invoicing, and accounts receivable/payable. The goal is to efficiently manage cash flow, inventory, and relationships with suppliers/customers.
Valuation & Financial Re-organization
This document provides contact details for valuation services at IndiaCP and outlines an upcoming business leadership program on valuation. It discusses what valuation is, key concepts like value vs price and the difference between transactions and valuations. It covers standard valuation approaches like income, asset and market approaches. It also discusses valuation methodologies, factors considered, and regulatory contexts where valuation is required in India like for the Reserve Bank of India, Income Tax, and SEBI.
The document provides an overview of valuation concepts, principles, standards and processes. It defines key terms related to valuation such as standard of value, premise of value, fair market value. It discusses valuation approaches like market, income and cost approach and methods under them such as comparable companies method. It summarizes the Indian Valuation Standards for valuations in India.
This document provides an overview of business valuation. It discusses the common reasons valuations are performed, including buying/selling a company, estate planning, financing, and litigation. The accepted valuation methodologies are also reviewed, including the income approach using discounted cash flow and capitalization of cash flows methods, market approach using comparable companies and precedent transactions, and asset-based approach. Key valuation concepts like standards of value, levels of value, and determining discount rates are also summarized.
Puregold Price Club, Inc. is a retail company operating hypermarkets that provide a one-stop shopping experience. The company aims to be the most customer-oriented retailer offering best value. It seeks to establish relationships with suppliers and partners while promoting employee development. The document outlines the company profile, vision, mission, values, and board members. It also describes the audit objectives for expenses, including procedures to validate payroll, rent, utilities, repairs and maintenance, and insurance expenses are accurate and comply with policies.
This document provides information on various business concepts including invoices, bills, purchase orders, customer orders, inventory control, checks, reorder levels, and return on investment. An invoice is a document from a seller to a buyer listing the products, quantities, and agreed prices that have been provided. A purchase order is an offer from a buyer to a seller specifying the types, quantities, and agreed prices of products or services. Inventory control involves supervising supply levels to ensure adequate but not excessive amounts of items. A reorder level is the inventory amount at which a new order is placed. Return on investment is a performance measure that evaluates investment efficiency by dividing net profit by cost of investment.
John Cronje has over 30 years of experience in financial management roles in the mining industry. He is currently the Group Financial Manager and Financial Manager of Witkop Fluorspar Mine (Pty) Ltd. He holds a B Com degree from Rhodes University and certificates in mining from Wits Business School and Katelego Fela Consulting. His responsibilities in his current role include financial reporting, budgeting, cash flow management, procurement, production cost control, and ensuring compliance. Prior to his current role, he held financial management positions of increasing responsibility with various gold and copper mining companies.
- Ind AS 115 replaces existing revenue standards and provides a single comprehensive model for revenue recognition. It is effective for annual periods beginning on or after April 1, 2018.
- The key change under Ind AS 115 is the requirement to recognize revenue when a customer obtains control of promised goods or services rather than when risks and rewards are transferred. Control is defined as the ability to direct the use and obtain the benefits from the goods or services.
- Ind AS 115 introduces a five-step model for revenue recognition: 1) identify the contract with the customer, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate transaction price to performance obligations, and 5) recognize revenue when performance obligations are
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on M&A Valuation and challenges at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016. Corporate Professionals acted as the event supporting partner.
• In case of a merger valuation, the emphasis is on arriving at the relative values of the shares of the merging companies to facilitate determination of the swap ratio, hence, the purpose is not to arrive at absolute values of the shares of the companies. The key issue to be addressed is that of fairness to all shareholders. There are established legal precedence for merger valuation methodologies:
• Valuer’s role is to incorporate case specific factors and use appropriate methodologies so as to determine a fair ratio
• Usually, best to give weight ages to valuation by all methods
• Market price method and Earnings methods dominate.
• It is observed that in case of M&A, the Valuations depart from the concept of “Fair Value” as elements like Distress Sale, Desperate Buy, Comparable Transaction Multiples come into play reflecting Price than Value.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Alternative Investment Fund [AIF] are a class of pooled investment funds which invest in venture capital, real estate, private equity, hedge funds, managed futures. In other words, an AIF refers to an investment which is different from the conventional class of assets such as stocks, debt securities, etc. These privately pooled vehicles that collect money from sophisticated private investors who wish to diversify their portfolio and choose alternative modes of investments.
We are a Corporate Compliance organization having our presence across the globe aiming to ease compliance
and assist in business evolution.
✓ We ensure that your business is up to pace with todays hyper-dynamic corporate legal structure(s)
✓ We take care of your compliance, so you can focus on your business.
2. Financial Asset Valuation
Employee Subscription Right
Convertible Bond
Redeemed Preferred Stock
Guarantee Contract
DEFINITION
The employer entitle employee to purchase company stock at a
specific price in a specified period of time.
Besides the principal and interest, holder can convert bond into a
specified number of common stock in the issuing company at a
specific price.
A type of preferred stock that allows the issuing company to buy
back the stock at a specific price after a specified period of time
without paying interest for preferred stock anymore.
A contract to perform the promise, or discharge the liability, of a
third person in case of his default.
世邦魏理仕
www.cbre.com.cn
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3. Financial Asset Valuation
WHEN to ASSESS the FAIR VALUE
The issue date.
EMPLOYEE SUBSCRIPTION RIGHT
CONVERTIBLE BOND
REDEEMED PREDERRED STOCK
GUARANTEE CONTRACT
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On balance sheet day when following
circumstances occur:
1. Guarantee contract possibly bring the
economic benefits outflow; Or
2. The amount of economic outflow cannot be
measured reliably.
4. Financial Asset Valuation
VALUATION METHODS
Employee
Subscription
Right
Use binomial
option pricing
model of income
approach.
Convertible
Bond/Redeeme
d Preferred
Stock
Use discounted
cash flow method
and binomial
option pricing
model of income
approach.
Guarantee
Contract
Evaluate enterprise
credit rating in
accordance to
international rating
criteria and then
use binomial
option pricing
model.
6. Company Valuation
Company Valuation
Fair Value
DEFINITION
According to related report standards, qualified person
issue the report of the amount of sources and reserves of
mineral and energy. Report standards for mineral are JORC
Standards, NI43-101 and SAMREC Standards, for oil is
PRMS.
The value of the property which would change hands
between a willing buyer and a willing seller, neither being
under any compulsion to buy or to sell and both having
reasonable knowledge of relevant facts.
世邦魏理仕
www.cbre.com.cn
欢迎阁下致电垂询:
电话:8610 85880566
手机:86 13718783915
电邮:paul.hung@cbre.com.cn
7. Company Valuation
WHEN to ASSESS the FAIR VALUE
According to the regulation of exchange market, there
must be “acquisition price valuation” on/before the
following occasion: 1) extremely substantial
transaction, 2) major transaction, 3) related party
transaction, 4) reverse takeover action
MERGER and
ACQUISITION
INVESTMENT and FINANCING
REFERENCE
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When investing, financing or applying for loan, valuation
is required as decision making evidence.
TAX REPORT When involves endowment, legacy distribution or asset
transfer, valuation is required as evidence of tax report.
8. Company Valuation
VALUATION METHODS
Priority
Market
Comparison
With necessary
adjustments, use the
value of traded
similar enterprise or
listed company as
comparable case to
valuate the fair value
of the subject.
Acceptable
Income
Approach
Valuate the projected
net income of the
subject and discount
it to determine the
value of asset.
Exception
Cost
Approach
Reasonably appraise
the value of all assets
and liabilities on the
balance sheets to
determine the value
of the subject.
10. Minerals and Energy Sources Valuation
Sources and
Reserves Report
Valuation Report
DEFINITION
According to related report standards, qualified person
issue the report of the amount of sources and reserves of
mineral and energy. Report standards for mineral are JORC
Standards, NI43-101 and SAMREC Standards, for oil is
PRMS.
According to related report standards, qualified valuer
issue the report of the value of mineral and energy.
Related report standards are CIMVAL Standards, SAMVAL
Standards and VALMIN Standards.
世邦魏理仕
www.cbre.com.cn
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电话:8610 85880566
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11. Minerals and Energy Sources Valuation
WHEN to ASSESS the FAIR VALUE
According to the regulation of exchange market,
following listed documents must be attached with
sources and reserve report: 1) newly listed, 2)
extremely substantial transaction, 3) major
transaction, 4) reverse takeover action
SOURCES and
RESERVES REPORT
VALUATION REPORT
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According to the regulation of exchange market,
following listed documents must be attached with
sources and reserve report: 1) extremely substantial
transaction, 2) major transaction,3) related
transaction, 4) reverse takeover action
12. Minerals and Energy Sources Valuation
VALUATION METHODS
Market
Comparison
On valuation point,
use the value of
similar market
transaction to valuate
fair value of the
subject, which
requires recent
comparable cases to
realize the objectivity
and reliability.
Income
Approach
Sum up discounted
value of annual
projected net cash
flow. This method is
suitable for mine
development in the
production phase.
Cost
Approach
Apply the amount of
investment and cost
of mine development
as the evidence for
mine valuation. This
method is suitable for
mine development in
the early phase.
13. Minerals and Energy Sources Valuation
世邦魏理仕
www.cbre.com.cn
欢迎阁下致电垂询:
电话:8610 85880566
手机:86 13718783915
电邮:paul.hung@cbre.com.cn
Collect
Data
Site
Inspection
Submit
Reports
Follow
Up
Sign
Contract
14. Biological Asset Valuation
Biological Asset
Agriculture Products
Fair Value
DEFINITION
Animals or plants which have life, such as grape trees crops,
artificial forest trees, sheep, cows and pigs.
Products of biological assets such as grapes, cotton, wood, wool,
milk and meat.
The value of the property which would change hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or to sell and both having reasonable
knowledge of relevant facts.
世邦魏理仕
www.cbre.com.cn
欢迎阁下致电垂询:
电话:8610 85880566
手机:86 13718783915
电邮:paul.hung@cbre.com.cn
15. Biological Asset Valuation
WHEN to ASSESS the FAIR VALUE
In accordance with the provisions of the IAS 41,
following circumstances need to be assessed:
1. The initial booked day (such as the birthday of a cow,
the time crops are planted).
2. Each balance sheet day (at least twice a year for
public companies).
BIOLOGICAL
ASSET
AGRICULTURE
PRODUCT
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1. The initial booked day (like the harvest day).
2. Each balance sheet day (at least twice a year for
public companies).
16. Biological Asset Valuation
VALUATION METHODS
Priority
Market
Comparison
If there is an active
market for biological
assets or agricultural
products, the market
prices should be the
appropriate basis for
determining the fair
value of the assets.
Acceptable
Income
Approach
If the price or value
of a biological asset
market cannot be
obtained, the fair
value should be
determined by the
present value of the
expected net cash
flow.
Exception
Cost
Approach
It is suitable for
biological assets,
such as the newly
planted fruit trees,
which have little or
no biological
conversion from the
original cost.
18. Merger and Acquisition Valuation
Enterprise Merger
Assessment of
Acquisition Price
Assessment of Acquisition
Price Allocation
DEFINITION
In order to form a process that involves the input and the
processing of input, create a business which can make
output when purchase or merge assets or companies.
Value the fair value of the acquired assets or companies at
the acquisition date, to make sure the acquisition price
reasonable.
On the acquisition date, the acquisition price will be
assessed into acquired tangible assets, intangible assets,
debt and goodwill.
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19. Merger and Acquisition Valuation
WHEN to ASSESS the FAIR VALUE
According to the regulation of exchange market, there
must be “acquisition price valuation” on/before the
following occasion: 1) extremely substantial
transaction, 2) major transaction, 3) related party
transaction, 4) reverse takeover action
ASSESSMENT OF
ACQUISITION PRICE
(BEFORE MERGE)
ASSESSMENT OF
ACQUISITION PRICE
(AFTER MERGE)
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In accordance with the provisions of the IFRS 3,
enterprises merger transaction must be followed by
the action “Assessment of Acquisition Price
Allocation”.
20. Merger and Acquisition Valuation
VALUATION METHODS
Assessment of Acquisition Price
Market
Approach
Use the recent market transaction as
comparable to be the valuation
evidence.
Income
approach
Calculate the replacement cost of
replace or reproduce company,
based on the market price of similar
market transaction, or the sum of
the value of each independent asset
in the enterprise.
Cost
Approach
Calculate the sum of the discounted
value of predicted net cash flow in
the year.
Assessment of Acquisition Price Allocation
Asset/D
ebt
Categories Valuation
approaches
Valuation
methods
Asset Securities Market
Approach
Market value
method
Asset Trademarks/c
opyrights
Income
approach
Option money
economization
Asset Patents/
technology
Income
approach
Residual income
method
Asset Tenant
relationship
Income
approach
Residual income
method
Asset Machines and
equipment
Cost approach Replacement
cost method
Debt Account
receivables
Cost approach Adjusted book
value method
Debt Long-term
debt
Income
approach
Discounted cash
flow method
Debt Employee
options
Income
approach
Binomial option
pricing method
Asset Goodwill Acquisition price less net asset
price
21. Merger and Acquisition Valuation
世邦魏理仕
www.cbre.com.cn
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电话:8610 85880566
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22. Intellectual and Intangible Asset Valuation
Promotion
Customer
Art
Contract
DEFINITION
Trademark, authenticate, internet domain name, noncompetitive
agreement.
Client relation and client contract.
Audio-visual copyright, musical copyright, literary copyright,
pictorial copyright.
Use permission, construction permission, contract of tenancy,
supply and marketing contract, employment contract.
世邦魏理仕
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Technology Patent, technology, formula, software, database.
23. Intellectual and Intangible Asset Valuation
WHEN to ASSESS the FAIR VALUE
1. In accordance with the provisions of IFRS 3, valuation
for all assets and liabilities (intangible assets
included) in acquired business is required when
merge.
2. When intellectual assets and other intangible assets
are pledged for loan.
3. Applied as reference when merger, acquisition or
contribution of capital happen.
INTELLECTUAL and
INTANGIBLE ASSET
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24. Intellectual and Intangible Asset Valuation
VALUATION METHODS
Trademark,
copyright
Option money
economization
Multi-period
excess earnings
approach
Patent, internet
domain name
Multi-period
excess earnings
approach
Customer
relation
Multi-period
excess earnings
approach
Supply and
marketing
contract,
noncompetitive
agreement,
contract of
tenancy
Income difference
comparison
Software,
formula,
software
Income difference
comparison/
Multi-period
excess earnings
approach
25. Intellectual and Intangible Asset Valuation
世邦魏理仕
www.cbre.com.cn
欢迎阁下致电垂询:
电话:8610 85880566
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电邮:paul.hung@cbre.com.cn
Collect
Data
Site
Inspection
Submit
Reports
Follow
Up
Sign
Contract
26. Paul Hung
Associate Director
Head of Business Valuation, Greater China
+86 137 1878 3915
paul.hung@cbre.com.cn
Peter Ma
Manager
Business Valuation, Greater China
+86 10 8688 0561
peter.ma@cbre.com.cn
Valuation & Advisory Services | China
11th Floor| Tower 2, Prosper Center
No. 5 Guanghua Road | Chaoyang District | Beijing, PRC 100020