Business Valuation

AVISTA is pleased to announce the publication of the "2025 Hong Kong Listed Companies Goodwill Impairment Study," a comprehensive analysis of Goodwill Impairment (“GWI”) trends among more than 2,600 Hong Kong-listed companies.
 
Our 2025 study provides essential, data-driven insights by compiling GWI reported by Hong Kong-listed companies in 2024, highlighting the Top 10 largest impairments recorded. Furthermore, the publication offers a valuable historical perspective by analyzing GWI trends spanning the 2020-2024 timeframe.
 
<a href="../../../../../uploads/2025_HK_Goodwill_Impairment_Study_2498ef732f.pdf" target="_blank" rel="noopener">Read the summary now</a>
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2025 Hong Kong Listed Companies Goodwill Impairment Study

The International Accounting Standards Board (“IASB”) has published the Exposure Draft on Business Combinations — Disclosures, Goodwill and Impairment (the “Exposure Draft”) in March 2024, proposing changes to IFRS 3 and IAS 36 to improve the information provide to investors in order to help investors better assess management’s decision to make an acquisition and the performance of that acquisition. Companies should pay attention to the potential impact of the Exposure Draft and ensure their compliance with the latest rules and disclosure requirements.
 
<a href="../../../../../uploads/IASB_Exposure_Draft_on_Business_Combinations_Disclosures_Goodwill_and_Impairment_V3_79e696e4f5.pdf" target="_blank" rel="noopener">Read the report now</a>
<a href="../../../../../uploads/IASB_Exposure_Draft_on_Business_Combinations_Disclosures_Goodwill_and_Impairment_V3_79e696e4f5.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/Publication_Cover_EN_181fce7bbb.png" width="500" /></a>

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IASB Exposure Draft on  Business Combinations — Disclosures, Goodwill and Impairment

In October 2023, the Stock Exchange of Hong Kong Limited issued a guidance letter on the "Disclosure of the Basis of Consideration and Business Valuations in Notifiable Transactions”. The guidance letter emphasizes the need for listed companies to provide adequate explanation of the basis for determining the consideration of the transaction by disclosing sufficient and objective information in the disclosure documents, and provides guidance on the recommended disclosures.
 
<a href="../../../../../uploads/HK_Ex_Guidance_Letter_on_Disclosure_of_the_Basis_of_Consideration_and_Business_Valuation_in_Notifiable_Transactions_ab6483414a.pdf" target="_blank" rel="noopener">Read the report now</a>
 
<a href="../../../../../uploads/HK_Ex_Guidance_Letter_on_Disclosure_of_the_Basis_of_Consideration_and_Business_Valuation_in_Notifiable_Transactions_ab6483414a.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/Screenshot_2023_11_01_at_2_19_25_PM_a091602f0e.png" width="500" /></a>

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HKEx Guidance Letter on Disclosure of the Basis of Consideration and Business Valuation in Notifiable Transactions

On August 21, 2023, the Ministry of Finance officially released the "Interim Provisions on Accounting Treatment of Enterprise Data Resources" ("Provisions"), which will be implemented from January 1, 2024. In response to this, under the guidance of the Ministry of Finance, the China Appraisal Society issued the "Guidelines on Data Assets Valuation" ("Guidelines") on September 8, 2023, which will be implemented from October 1, 2023. Against this backdrop, the valuation of data assets faces new challenges, and data assets’ valuation has become an indispensable and crucial link in promoting data capitalization and the development of the data assets market.
 
<a href="../../../../uploads/Overview_of_Data_Assets_Valuation_Methods_bab064ce42.pdf" target="_blank" rel="noopener">Read the report now</a>
 
<a href="../../../../uploads/Overview_of_Data_Assets_Valuation_Methods_bab064ce42.pdf" target="_blank" rel="noopener"><img src="../../../../uploads/Screenshot_2023_10_31_at_10_44_12_AM_4443d8773f.png" width="500" height="709" /></a>

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Overview of Data Assets Valuation Methods

On 18 March 2022, Aquila Acquisition Corporation has been successfully listed on Hong Kong Stock Exchange as the first IPO of a SPAC under HKEX’s latest listing regime. AVISTA Group is honored to be engaged in offering valuation services to Aquila Acquisition Corporation on the first SPAC listing in Hong Kong. Some retail investors may view the SPACs’ financial statements are similar to those of traditionally listed companies, yet the SPACs’ financial instruments are much more complicated. The structure of each SPAC warrant may differ and it is hard to make an apples-to-apples comparison. Therefore it is challenging to perform valuation for SPAC warrants, which requires proper evaluation by professionals and valuation specialists. Read the <a href="../../../../../uploads/SPAC_Warrants_Valuation_Guide_2022_EN_2_12fd4d21b3.pdf" target="_blank" rel="noopener">SPAC Warrants Valuation Guide</a> now to discover more. 
<a href="../../../../../uploads/SPAC_Warrants_Valuation_Guide_2022_EN_2_12fd4d21b3.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/EN_1_3ae31f2265.png" alt="" width="300" height="424" /></a>

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Special Purpose Acquisition Companies (SPACs)  Warrants Valuation Guide

The buzzwords “Web 3.0” and “Metaverse” have successfully captured a lot of media and public attention, provoking a worldwide metaverse frenzy since 2021. Web3, with blockchain as its backbone, has redefined the way we execute transactions via the Internet, for instance, creators selling content as NFT in OpenSea. There is no doubt that the metaverse will forever change the way people conduct social and business interactions in the future, but in what form will it take and which areas will be benefited most in the initial stage of its master plan? Click <a href="../../../../../uploads/Explore_the_real_world_opportunities_in_the_metaverse_EN_836b8d1c03.pdf" target="_blank" rel="noopener">here</a> to read on. <a href="../../../../../uploads/Explore_the_real_world_opportunities_in_the_metaverse_EN_836b8d1c03.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/Explore_EN_87f5d97b85.png" alt="" width="300" height="424" /></a>

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Explore the Real-world Opportunities in the Metaverse

Coupled with rising concerns of climate change and governments’ commitment to carbon neutrality, it is an irreversible trend of electric vehicles increasingly being adopted, with China and Europe being the key markets. This phenomenon has unsurprisingly brought investment attractiveness in the financial market. The electric vehicle-related Exchange Traded Funds (ETF) notably outperformed the general market in both the United States and China over the previous year, which was contributed by the companies in the value chain of industry, ranging from lithium &amp; battery to vehicle manufacturing.
 
Click <a href="../../../../../uploads/New_Energy_Vehicle_Sector_Update_July_2021_1b542f4196.pdf" target="_blank" rel="noopener">here</a> to download the full report. 
 
<a href="../../../../../uploads/New_Energy_Vehicle_Sector_Update_July_2021_1b542f4196.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/EV_cover_en_1039de1b40.JPG" width="600" /></a>