Enhancing ECL Assessments
Valtech remains proactive in collaborating with CPA firms and auditors to address queries raised by the Accounting and Financial Reporting Council (AFRC) regarding complex valuation processes. A key issue frequently discussed is the relevance of adopting Moody’s research data for expected credit loss (ECL) assessments, particularly when counterparties are based in Hong Kong or Mainland China.
While Moody’s research provides valuable global insights, its applicability to receivables involving local counterparties in Hong Kong and China has been questioned due to regional economic and market differences. Recognizing this challenge, Valtech has undertaken extensive research and brainstorming to refine its ECL assessment methodology.
To address the concerns of auditors and the AFRC, Valtech has shifted away from relying solely on Moody’s data, instead adopting alternative approaches tailored to the Hong Kong and China markets. These new methods incorporate localized data sources and advanced analytical techniques to ensure greater relevance and accuracy in ECL assessments, aligning with regulatory expectations and enhancing the robustness of financial reporting.
Valtech’s commitment to continuous improvement ensures that its valuation services remain compliant, defensible, and aligned with the unique dynamics of the Asia-Pacific region, providing clients with reliable and high-quality valuation insights.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.