When to need valuation
According to HKEx Listing Rule 5.01B, the IPO listing document must include:
(1) for property interests of an applicant's property activities: (a) the full text of valuation reports of property interests that are required to be valued except where summary disclosure is allowed; and (b) a summary disclosure if the market value of a property interest as determined by the valuer is less than 5% of its total property interests that are required to be valued under rule 5.01A(1). See Appendix 26 for the summary form of disclosure. The Exchange may accept variation of the summary form of disclosure based on the applicant's circumstances. The valuation report setting out the information required by these Rules must be available for public inspection;
(2) for property interests of an applicant's non-property activities: (a) the full text of valuation reports if the carrying amount of a property interest is or is above 15% of its total assets; and (b) a statement that, except for the property interests in the valuation reports, no single property interest that forms part of its non-property activities has a carrying amount of 15% or more of total assets;
According to HKEx Listing Rule, fair value of acquisition consideration is required before / when the following transactions happen: 1) Major Transaction or 2) Very Substantial Transaction or 3) Connected Transaction or 4) Reverse Takeover
According to HKEx Listing Rule chapter 14.67 and 14.69, a circular issued for Major Transaction or Very Substantial Acquisition or Very Substantial Disposal circulars or Reverse Takeover on an acquisition or disposal of any revenue-generating assets must contain a Valuation Report. Valuation Report must be reviewed by the auditors or reporting accountants to ensure that such information has been properly compiled and derived from the underlying books and records. Valuation report regarding infrastructure project or an infrastructure or project company (s) must clearly set out: (1) all fundamental underlying assumptions including discount rate or growth rate used; and (2) a sensitivity analysis based on the various discount rates and growth rates.
According to IAS 16.7, the cost of an item of property shall be recognized as an asset if, and only if: (a) it is probable that future economic benefits associated with the item will flow to the entity; and (b) the cost of the item can be measured reliably.
According to IAS 40.16, an owned investment property shall be recognised as an asset when, and only when: (a) it is probable that the future economic benefits that are associated with the investment property will flow to the entity; and (b) the cost of the investment property can be measured.
According to IAS16.29, an entity shall choose either the cost model in paragraph 30 or the revaluation model in paragraph 31 as its accounting policy and shall apply that policy to an entire class of property.
Bank Loan Mortgage, Investment Reference, Purchase Price Allocation….and etc.