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- Vehicles of transportation such as seagoing vessels and aircraft presently do not fall within the definition of plant, machinery and equipment and as such valuation reports need not be prepared in compliance with the Asset Valuation Guidelines.
- However, pursuant to Paragraph 9.06(a) of the Equity Guidelines, in an initial public offering or a back-door listing/reverse take-over scheme, the SC requires a valuation for these assets to be conducted where the revalued amount of these assets is used, whether wholly or partly, as the basis for determining the consideration in the acquisition of such assets or corporations which own such assets.
- The valuation certificate or summary of the valuation report which forms part of the prospectus and the valuation report shall be submitted to the Property Valuation Department of the SC together with the submission of the application proper for the proposals.
- When preparing the valuation report, the following general principles apply:
The report must contain among others, the inventory of the assets being valued including the relevant details thereof, analytical process, valuation methodology, data and information used to arrive at the valuation conclusion;
The valuation report complies with generally acceptable valuation standards and principles; and
The valuer must ensure disclosure of all material information and all information disclosed is adequate, accurate and not misleading.
- Corporations, advisers and valuers are encouraged to have pre-submission consultations to address potential issues, if any.