RICS Valuation Guidance Note  -
Intellectual Property Rights and IVSC Professionalism Framework for Business Valuation in Hong Kong

CHFT has submitted our responses to RICS consultation on the new Guidance Note of RICS Valuation of intellectual property rights (the “IP Guidance Note”) as well as to a task force of International Valuation Standards Council (“IVSC”) on a Proposed Standards and Professionalism Framework for Business Valuation in the Hong Kong market.

 

Compared with the 1st Edition of the IP Guidance Note, the new edition will cover a wider scope of categories of intellectual properties, in particular data-related intellectual property (“IP”) was firstly added to the content. The Guidance Note considers characteristics of different types of intellectual properties, and provides detailed guidance in selection of valuation approach(es).

 

The Proposed Standards and Professionalism Framework of IVSC aims at setting quality business valuation standards and improving business valuation practice in Hong Kong. It will set up a standard to business valuers to handle valuation issues raised recently in Hong Kong, including but not limited to ethical and technical issues.

 

CHFT provided practical suggestions to RICS as well as comments to IVS. We believe that this new guidance note sets a good direction for valuers to provide professional valuation services for intellectual properties. As a regulated valuer of RICS, CHFT will follow this new guidance note. The Framework will help our clients to select the appropriate valuers in the Hong Kong market.

 

About RICS Valuation of Intellectual Property Rights

RICS Valuation of Intellectual Property Rights is written to provide sound guidance for RICS members and for firms regulated by RICS. It is a professional standard for the purposes of RICS Rules of Conduct. This guidance note builds on relevant sections from IVS and Red Book Global Edition, and is effective three months from publication.

 

About Proposed Standards and Professionalism Framework for Business Valuation

Proposed Standards and Professionalism Framework for Business Valuation is created by leaders from the accounting, valuation, audit and business advisory sector. This paper documents the proposed framework for the sake of enhancing business valuation practices and environment in Hong Kong.

Two CHFT members attended a briefing of business valuation framework for Hong Kong conducted by Mr Nicolas Talbot of IVSC at the local RICS office (Photo source: RICS)