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Formulates Professional Business Valuation Standards and Best Practices Guidelines;
Promotes Sustainable Growth in Hong Kong's Valuation Industry |
HONG KONG, Nov 26, 2015 - (ACN Newswire) - The Hong Kong Institute of Financial Valuers ("HKIFV" or the "Institute") announced the commencement of the Institute at the inauguration ceremony held at the Conrad Hong Kong on 26 November 2015. More than 100 guests from various sectors, including valuation firms, the Securities and Futures Commission, accounting firms, law firms and financial institutions were present to celebrate the occasion. The evening was hosted by Mr. Ken Yue, Chairman of the HKIFV, with the Hon Jasper TSANG Yok-sing, GBM, GBS, JP and Dr. Fu Pengpeng, Deputy Researcher, Department of Educational, Scientific and Technology Affairs of Liaison Office of The Central People's Government in The Hong Kong S.A.R. as the Officiating guests.
 | | The HKIFV Announces Its Inauguration |
The HKIFV is a non-profit organization advocated and founded by a number of valuation practitioners in Hong Kong that primarily aims to represent valuation professionalism and help providing guidance as well as to regulate the financial valuation industry in Hong Kong. It is established with the vision to represent the financial valuing profession to the public and governing bodies, and to promote the highest standard of professional and ethical conduct in the industry. Meanwhile, its mission is to establish working and cooperative relationship with the profession's related industries; and to foster public awareness and trust in the members through advancing honest, professional and ethical practices.
In recent years, financial valuation has gradually formed an integral part of Hong Kong's financial system. Many listed or private companies often engage independent financial valuers to carry out business valuation for their financial reporting, internal or public documentation purposes. As part of the public documentations, the business valuation reports are one of the most important documents that would allow the general public to assess the viability of the potential transactions. Meanwhile, business valuation also plays an important role in the aspect of financial reporting. The auditors regularly seek advice from independent valuers to assess the fair values of certain assets and liabilities stated in the financial statements.
Mr. Ken Yue, Chairman of HKIFV said, "Currently, no uniform standards for business evaluation similarly as the "Evaluation Standards for Corporate Value" formulated by American Society of Appraisers are available in Hong Kong. As an internationally recognized business and financial center, it is necessary for Hong Kong to formulate a set of uniform and professional business evaluation standards and code of best practices. Further, through promulgation and enforcement of the valuation standards, it is not only beneficial to the market practitioners and Hong Kong regulatory bodies as useful references during their course of vetting process for certain notifiable transactions, but also strengthen the international status of Hong Kong's valuation profession. The HKIFV would also safeguard users of the valuation services and the general public as a whole.
The principal objective of the HKIFV comprises three aspects. For valuation practitioners, the HKIFV seeks to provide them with a set of uniform and professional standards and practice guidelines particularly suitable for the Hong Kong market to follow. Quality of the reports complying with those requirements can be assured. Eventually, it can foster public trust and recognition for the industry. Apart from formulating reporting standards and enhancing public trust of the profession, the HKIFV also aims to provide members with professional training, counseling as well as dispute resolution.
Within Hong Kong, certain pressures are often being placed onto the financial advisers and sponsors by the regulatory bodies to assess valuation work. The HKIFV expects to relieve their pressures through the establishment of the business valuation standards and practice guidelines. In addition, pursuant to the Listing Rules, financial advisers are required to comment on profit forecasts and confirm that the profit forecasts were estimated after due and careful enquiry and review. Therefore, a uniform reporting standard is beneficial to the work of financial advisers.
For reviewers, including auditors and other regulatory bodies, the standard disclosure within valuation reports would allow easier understanding, and valuers would be obliged to provide basis of the valuation. When queries arise, comments would need to be addressed in a satisfactory manner by the valuers. Reviewers can also consult the HKIFV with regards to any potential disputes.
"Looking ahead, the HKIFV will strive to gain a recognized status granted by the relevant regulatory bodies or organizations like other similar professional institutes in the near future. In fact, we have started to engage with the regulatory bodies for constructive communication. Meanwhile, we also expect to enhance the collaboration with other related professional organizations so as to jointly promote sound development of the Hong Kong financial industry. In the long term, we envisage that the HKIFV shall become an internationally recognized governing body for valuation firms to provide uniform and stringent standards and guidelines for the entire industry. We will put every effort to fully leverage the existing platform and resources to promote the standardized valuation industry of Hong Kong and its steady and sustainable development", Mr. Yue concluded.
Contact:
Tel: +852 2592 8380
Email: info@hkifv.org
Topic: Press release summary
Source: The Hong Kong Institute of Financial Valuers
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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