Corporate valuation
services in China.

Acclime assists clients accross all sectors with valuation issues related to tax planning and compliance, financial reporting, mergers & acquisition transactions, corporate restructuring and dispute resolution.

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Reliable results

At Acclime we understand the need for reliability with regard to the value of corporate assets, but also with the accounting method itself. We strive to offer a thorough, detailed and trusted valuation of your company.

Unravelled complexity

In China, making corporate valuations can prove to be an incredibly complex process. Our experienced staff have a thorough understanding of what key factors drive value within a wide range of industries and scales.

Flexible support

Whatever your situation, we will provide you with the utmost support to accomplish your established goals. We strive to make our accurate valuations as pertinent to you as possible, and will listen carefully to your needs.
Corporate valuations

Our corporate valuation services.

  • Special purpose valuation

    Valuing Special-Purpose property, whether it is for public or private purposes, is vital to analysing reasonable rateable values and the costing of tax. Special purpose valuation may look at the company’s management, the composition of its capital structure, future cash inflows and market value of assets.

    Valuation on property requires a lot of research into the entity and should be done in a strategic process. These key methods should be considered when valuing special purpose property:

    • Planning and preparation (Why does the asset need a valuation?)
    • Adjusting the financial statements (Is there a balance?)
    • Is there an estimate of the value?
    • Is there a growing concern in the business? (Will the entity continue for the next 12 months?)

    Throughout our history of practice across the whole of Greater China, Acclime has gained extensive experience in valuing Special-Purpose property for both the public and private sector. We can also assist in the adaptive reuse of Special-Purpose property following the cessation of specific design activity and in managing disposal and acquisitions of Special-Purpose property.

  • Damage assessment valuation

    Damage Assessment Valuation is estimating the amount of damage or loss caused by an accident or a natural disaster. This process can include an estimate of the extent of damage as well as what can be replaced, restored or possibly saved. This estimate may also include the time required for the service required (i.e. repair, replacement or recovery).

    Our teams combine various and relevant areas of expertise. Our teams have experience providing damage valuation services for a wide variety of complex issues. They understand that not every case is the same and that there are many factors that change the amount of damage done, or the value of the property lost and that these vary greatly case to case. This experience and individual attention to each case is why we are able to offer the highest quality of damage valuation service here at Acclime.

  • Intellectual property valuations

    Intellectual property (IP) is made valuable by a number of different factors, ranging from market share and entry barriers to growth projections and economic life. Acclime’s team has a deep understanding of those various parameters in order to provide you with the highest quality work.

    Acclime’s experience in IP valuations includes the following:

    • Evaluating potential mergers and acquisitions
    • Identifying and prioritizing assets
    • Having all the necessary information to make informed financial decisions about IP maintenance, commercialization and sales
    • Valuing the prospects of technology before putting money into research and development
    • Prioritising research projects based on value
  • Asset valuation

    Acclime offers appraisal services for asset valuation, both for setting up new fixed asset records for allocation of purchase price and for determining the value of assets for an insurance valuation.

    A correct and thorough valuation of fixed assets can be a time consuming process. Disagreements over the value of fixed asset contributions have regularly been a major problem cited by foreign companies when setting up joint ventures in China. Taking control of the process and appointing of suitable valuators can be critical in facilitating a satisfactory outcome.

    Whatever your situation, Acclime will provide you with the utmost support to accomplish your established goals. Our accurate valuations arise through having economic knowledge and being able to properly investigate business and industry. Our highly professional staff will work to assign the correct value to the asset to ensure sound financial records and efficient business planning.

Single time- or project-based fee

Common questions.

When forming a joint venture in China, what are some of the IP issues that I should be concerned about?

As the investment market in China is becoming more and more deregulated, the practice of acquiring a company is becoming popular. One of the most important things to determine in an acquisition is the structure of the transaction. This may be dictated by investment regulations. However, whether an asset or share purchase transaction structure is used will greatly affect how the IPR involved will be affected.

It is very important to carry out a due diligence check before following through on a merger or acquisition. The majority of enterprises have some form of IPRs and how integral those IPRs are to the business under acquisition is very important to know. An IPR-specific due diligence can be very useful.

Registered IPRs, such as trademarks and patents, can be simply checked with the relevant office. Not yet registered IPRs can prove difficult. In some cases they may mean that an in depth investigation of the business history, including employment contracts, confidentiality agreements and other documents that can determine the security of an IPR must be conducted. When acquiring a company that has licensed its IPRs from another company, it cannot be stressed enough that one must first review these license agreements to guarantee that the licensing contracts are in fact transferable.

Is it necessary to conduct a legal due-diligence exercise in a merger and acquisition transaction in China?
Certainly. Some Chinese companies may have certain irregularities somewhere in the course of their business. For example, the director of a company may deliberately fail to file for registration of title to a property in order to save costs. It is imperative that a foreign investor resolves any irregularities there may be before entering into the merger and acquisition transaction. Therefore, conducting a legal due diligence exercise is often just as important as conducting a financial due diligence to determine the viability of the target company in a merger and acquisition deal.
What are the auditing requirements in China?

In Western countries limited liability companies are generally subject to an annual audit carried out by independent external auditors whose role is to express an objective opinion on the truthfulness and fairness of the financial statements.

In China, auditing is not a legal requirement but is required under the regulations. Prior to the introduction of the ASBE, the primary objective of auditing in China was to carry out inspection on the financial records of a business to ascertain their accuracy and legality (i.e. whether the transactions conducted complied with relevant state laws and regulations). Auditors in China are concerned with protecting the legal interests of the company as well as the interests of the state. Only with the implementation of the ASBE were the concepts of true and fair presentation introduced.

Prior to 2000 financial statements of state-owned enterprises were not required to be audited annually by independent auditors, but periodical or social audits conducted for the purpose of ascertaining the enterprise’s tax liabilities or other purposes might be conducted by the State Audit Bureau or Tax Bureau. Since 2002, except for a few types of specialised industries that have been explicitly exempted, all other state-owned enterprises must be audited at least annually. In addition, the regulations governing the accounting of joint stock companies and foreign investment enterprises require these companies to be subject to annual audit carried out by a registered Chinese certified public accounting firms. When reporting on whether the financial statements of foreign investment enterprises are prepared in accordance with the relevant laws and regulations, auditors may make reference to the following main laws and regulations:

  • The PRC Sino-foreign Equity Joint Venture Law (EJV Law) promulgated by the National People Congress (NPC), effective July 8, 1979 and revised March 15, 2001
  • Implementing Regulations of the EJV Law promulgated by the State Council (SC), effective September 20, 1983 and revised July 22, 2001
  • The PRC Sino-foreign Cooperative Joint Venture Law (CJV Law) promulgated by the NPC, effective April 13, 1988 and revised October 31, 2000
  • The PRC Wholly Foreign-Owned Enterprise Law (WFOE Law) promulgated by NPC, effective April 12, 1986 and revised October 31, 2000
  • Implementing Rules of the WFOE Law promulgated by SC, effective December 12, 1990 and revised April 12, 2001
  • The PRC Small and Medium Enterprises Law (SME Law) promulgated by NPC and effective June 29, 2002 and revised October 18, 2011
  • Regulation on the implementation of Enterprise Income Tax Law of the PRC promulgated by NPC and effective January 1, 2008
What is the Accounting Law in China?
First promulgated in 1985, the Accounting Law was revised in December 1993 and then in 1999. From July 1, 2000, the new accounting law was adopted. It represents the highest level of legal norms governing accounting and forms the basis for the formulation of administrative rules and regulations in regard to accounting, as well as providing the highest guiding principles on accounting work. In tandem with this piece of specialised legislation, a number of corresponding laws were passed in the 1990s, including the Certified Public Accountant Law, Budget Law and Audit Law followed by related legislation such as Company Law, Law on Negotiable Instruments, Enterprise Bankruptcy Law, Economic Contract Law, and various tax laws. Together they constitute a legal framework of related economic legislation, forming the cornerstone of a legal system governing accounting work.
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