As the chairman of New Economy Committee of HKiNEDA, Dr. Lawrence Wong spoke as a keynote speaker on HKiNEDA Annual Conference.
Business valuation is closely related to daily corporate transactions, which would be significant enough to affect the company’s financial position and stakeholders’ interests. Once problems regarding business valuation occur in the listed company, the shareholders’ interests may lose their due protection and may be harmed by transactions with inferior advices. Therefore, it’s necessary to have a normative business valuation standard.
Dr. Lawrence Wong briefly explained business valuation standards in Hong Kong by summarising the key concerns of the Securities and Futures Commission (SFC). Besides, he also introduced the proposed Hong Kong business valuation standard, which brought a solid and unified ground for the discussions in the keynotes and panels in the event.
The criteria for Hong Kong business valuation standards are mainly composed of six important components, namely:
• Ethical Principles
• Professional Competence Requirements
• Continuous Professional Development
• Technical Standards for Business Valuation
• Framework for Assessing Service Performance (Mandatory Performance Framework)
• Appeal and Investigation Mechanism