- Published: December 2011
- Region: Global, Hong Kong
- Published: August 2010
- Region: Mongolia
- 14 Pages
- Frontier Securities
A larger percent of AA activities are focused on Mongolia, where opportunities are obviously growing. Recently, AA was involved in the global IPO of Southgobi Energy Resources at Hong Kong Stock Exchange, as appraisal consultant. Mongolia is being covered from Chinese and Russian offices, which count over 200 consultants within this region and 15 specialists for mining sector. Other than mining sector, Mongolia is very immature marketplace so far. Still AA supports the government path to greater transparency in corporate governance.
A valuation, or appraisal, is the process of estimating the potential market value of a financial asset or liability and is central for:
- Pre-IPO, IPO and post-IPO services;
Mongolia, being a developing market, needs to provide a formal legal opinion from a Hong Kong based law firm for valuations of property in HKEx. HKEx has post-listing requirements for “connected transactions”, i.e. transactions between parties that share an interest in a listed entity.
- IFRS related services;
Mongolia being compliant to IFRS can use valuation assignments for the following cases: business combinations, share based compensation (employee stock option plan or restricted shares), goodwill impairment or convertible instruments and embedded derivatives.
- Independent valuation
- Valuation services
- Specificity of Hong Kong Exchanges and Clearing Limited
- Symbiotic relationship with audit firms
- AA & Mongolian market
- Presentation material