PROFESSIONALS are calling for guidelines on trademark valuations of publicly-listed companies.
They want to see cleared a grey area in the listing rules and in company legislation, which fails to set specific requirements for companies to seek an independent trademark valuation.
At present, there is no professional organisation in Hong Kong to monitor the qualifications of companies that are conducting valuations on intangible property.
There are only three globally recognised trademark valuation organisations, the American Society of Appraisers, the Institute of Business Appraisers and the Chartered Canadian Institute of Valuation, according to Keith Yan, vice-president of a company, American Appraisal Hong Kong.
He said that the American Society of Appraisers was going to open a chapter in Hong Kong this year and that would raise the concern over the professionalism of intangible asset valuations in the territory.
Many companies ask their accountants or sponsors to value their trademarks when they are preparing their listing prospectus, risking a conflict of interest, said Mr Yan. In addition, sometimes the valuation on trademarks might not be based on proper methodology if they seek companies without expertise in this area, he added.
Many accounting firms in Hong Kong have teams to value intangible assets, such as trademarks.
