| Preface |
|
v | |
|
|
|
xxiii | |
|
Table of Statutory Instruments |
|
|
xxix | |
|
|
|
xxxi | |
|
|
|
xxxiii | |
|
DIVISION A MAIN NARRATIVE |
|
|
1 | (12) |
|
|
|
3 | (10) |
|
|
|
3 | (1) |
|
|
|
3 | (1) |
|
Limited and unlimited companies |
|
|
3 | (1) |
|
Different classes of shares |
|
|
4 | (1) |
|
|
|
5 | (1) |
|
|
|
5 | (1) |
|
Preferred ordinary shares |
|
|
6 | (1) |
|
|
|
6 | (1) |
|
|
|
7 | (1) |
|
|
|
7 | (1) |
|
Participating preference shares |
|
|
7 | (1) |
|
|
|
7 | (1) |
|
|
|
8 | (1) |
|
|
|
8 | (1) |
|
|
|
9 | (1) |
|
|
|
10 | (1) |
|
Basic valuation principles |
|
|
10 | (1) |
|
|
|
11 | (1) |
|
Discount for lack of marketability |
|
|
12 | (1) |
|
|
|
13 | (220) |
|
|
|
15 | (50) |
|
|
|
15 | (1) |
|
Asset being valued - definition of a share and shareholding |
|
|
15 | (5) |
|
Memorandum and articles of association |
|
|
20 | (3) |
|
Rights under the articles - control |
|
|
23 | (1) |
|
|
|
24 | (18) |
|
|
|
42 | (4) |
|
Just and equitable winding up |
|
|
46 | (3) |
|
|
|
49 | (4) |
|
|
|
53 | (5) |
|
|
|
58 | (2) |
|
|
|
60 | (3) |
|
Non-arm's length sales. Agreements with HMRC |
|
|
63 | (1) |
|
Valuation for foreign fiscal purposes |
|
|
64 | (1) |
|
|
|
65 | (30) |
|
|
|
65 | (1) |
|
Transferee to stand in transferor's shoes - restrictions on transfer |
|
|
65 | (2) |
|
|
|
67 | (1) |
|
|
|
68 | (1) |
|
|
|
69 | (1) |
|
|
|
70 | (1) |
|
|
|
71 | (1) |
|
|
|
72 | (7) |
|
Value fixed by the articles of association |
|
|
79 | (4) |
|
|
|
83 | (1) |
|
|
|
84 | (2) |
|
|
|
86 | (1) |
|
Time of hypothetical sale |
|
|
87 | (1) |
|
|
|
87 | (4) |
|
|
|
91 | (1) |
|
|
|
91 | (1) |
|
|
|
92 | (1) |
|
|
|
92 | (3) |
|
|
|
95 | (38) |
|
Valuation in accordance with an agreement |
|
|
95 | (2) |
|
|
|
97 | (2) |
|
|
|
99 | (3) |
|
|
|
102 | (9) |
|
|
|
111 | (12) |
|
|
|
113 | (10) |
|
|
|
123 | (1) |
|
Law Commission Report on Shareholder Remedies |
|
|
124 | (1) |
|
|
|
124 | (3) |
|
|
|
127 | (1) |
|
|
|
128 | (1) |
|
|
|
128 | (1) |
|
Fair Value for Financial Reporting Purposes |
|
|
129 | (1) |
|
|
|
129 | (1) |
|
Fair Values at Transaction Dates |
|
|
129 | (1) |
|
Revaluation of certain assets to fair value subsequent to initial recognition |
|
|
130 | (1) |
|
Use of fair values in impairment tests of assets |
|
|
131 | (2) |
|
|
|
133 | (30) |
|
|
|
133 | (1) |
|
General economic and political situation |
|
|
133 | (2) |
|
|
|
135 | (3) |
|
|
|
138 | (9) |
|
|
|
147 | (5) |
|
|
|
152 | (1) |
|
|
|
153 | (1) |
|
|
|
153 | (1) |
|
Contingent liabilities and taxation provisions |
|
|
154 | (5) |
|
|
|
159 | (3) |
|
|
|
162 | (1) |
|
|
|
162 | |
|
|
|
161 | (1) |
|
Contingent liabilities and taxation provisions |
|
|
161 | (2) |
|
|
|
163 | (12) |
|
Comparison with quoted shares |
|
|
163 | (5) |
|
Comparison with other investments |
|
|
168 | (2) |
|
|
|
170 | (2) |
|
|
|
172 | (1) |
|
|
|
173 | (2) |
|
|
|
175 | (28) |
|
|
|
175 | (1) |
|
|
|
176 | (1) |
|
|
|
177 | (9) |
|
Valuation on Termination of an Agency |
|
|
186 | (1) |
|
Accounting for goodwill and other intangible assets |
|
|
187 | (1) |
|
Accounting for purchased goodwill and intangible assets in accordance with IFRS |
|
|
187 | (1) |
|
Accounting for goodwill and intangible assets in accordance with UK GAAP |
|
|
188 | (2) |
|
Investment holding companies |
|
|
190 | (2) |
|
|
|
192 | (5) |
|
|
|
197 | (2) |
|
|
|
199 | (1) |
|
|
|
200 | (1) |
|
Asset-rich trading companies |
|
|
200 | (1) |
|
|
|
201 | (1) |
|
|
|
202 | (1) |
|
|
|
203 | (30) |
|
|
|
203 | (1) |
|
|
|
203 | (1) |
|
Capitalised future earnings |
|
|
203 | (1) |
|
|
|
204 | (1) |
|
|
|
204 | (1) |
|
|
|
204 | (1) |
|
|
|
205 | (1) |
|
|
|
206 | (1) |
|
|
|
206 | (1) |
|
Investment company - minority interest |
|
|
206 | (1) |
|
|
|
207 | (1) |
|
Shares of different classes |
|
|
207 | (2) |
|
|
|
209 | (1) |
|
|
|
209 | (1) |
|
Discount for non-marketability |
|
|
209 | (1) |
|
Canadian case law - fair market value |
|
|
209 | (1) |
|
|
|
210 | (1) |
|
|
|
210 | (1) |
|
|
|
210 | (1) |
|
|
|
210 | (1) |
|
|
|
211 | (1) |
|
|
|
211 | (1) |
|
|
|
211 | (1) |
|
Australian case law - general principles |
|
|
211 | (1) |
|
|
|
212 | (1) |
|
Willing buyer and willing seller |
|
|
212 | (1) |
|
|
|
213 | (1) |
|
New Zealand case law - market value |
|
|
214 | (1) |
|
|
|
214 | (1) |
|
|
|
214 | (1) |
|
|
|
214 | (1) |
|
Directors' fiduciary duties |
|
|
215 | (1) |
|
|
|
216 | (1) |
|
|
|
216 | (1) |
|
|
|
217 | (1) |
|
|
|
217 | (1) |
|
|
|
218 | (1) |
|
Valuation of unquoted shares in India |
|
|
218 | (1) |
|
|
|
219 | (1) |
|
|
|
220 | (1) |
|
|
|
220 | (2) |
|
|
|
222 | (1) |
|
|
|
222 | (2) |
|
|
|
223 | (1) |
|
Majority Shareholding/Influential Minority Shareholding |
|
|
223 | (1) |
|
|
|
224 | (1) |
|
|
|
224 | (1) |
|
|
|
224 | (1) |
|
|
|
224 | (1) |
|
|
|
225 | (1) |
|
|
|
226 | (1) |
|
|
|
227 | (1) |
|
|
|
227 | (1) |
|
|
|
228 | (1) |
|
|
|
229 | (1) |
|
|
|
229 | (1) |
|
|
|
230 | (1) |
|
|
|
230 | (1) |
|
|
|
230 | (1) |
|
|
|
230 | (2) |
|
|
|
232 | (1) |
|
|
|
233 | (50) |
|
Capital gains tax, corporation tax on chargeable gains, stamp duty, stamp duty land tax and income tax |
|
|
235 | (34) |
|
|
|
235 | (1) |
|
|
|
235 | (1) |
|
|
|
236 | (5) |
|
|
|
241 | (1) |
|
Statement of Practice 5/89-31 March 1982, re-basing |
|
|
242 | (1) |
|
Extra Statutory Concession D34 (issued on 20 May 1989) |
|
|
243 | (1) |
|
Extra Statutory Concession D44 (Issued on 16 March 1993)-31 March 1982, re-basing |
|
|
243 | (1) |
|
Non-arm's length transfers |
|
|
244 | (1) |
|
|
|
245 | (1) |
|
Termination of life interest |
|
|
245 | (1) |
|
|
|
246 | (1) |
|
|
|
246 | (1) |
|
|
|
247 | (1) |
|
|
|
247 | (1) |
|
Liquidation part disposals - Statement of Practice D3 |
|
|
248 | (1) |
|
|
|
248 | (2) |
|
|
|
250 | (1) |
|
31 March 1982 - re-basing |
|
|
250 | (1) |
|
|
|
251 | (1) |
|
Re-basing at 6 April 1965 |
|
|
251 | (1) |
|
|
|
252 | (1) |
|
|
|
252 | (1) |
|
|
|
252 | (1) |
|
Alternative Investment Market |
|
|
252 | (1) |
|
Lynall, transitional rules |
|
|
252 | (1) |
|
Deaths between 6 April 1965 and 30 March 1975 |
|
|
253 | (1) |
|
Death after 30 March 1975 |
|
|
253 | (1) |
|
|
|
254 | (1) |
|
|
|
254 | (1) |
|
|
|
254 | (1) |
|
|
|
255 | (1) |
|
|
|
255 | (1) |
|
|
|
255 | (1) |
|
|
|
256 | (1) |
|
Employee shares under ITEPA 2003 |
|
|
256 | (1) |
|
|
|
257 | (1) |
|
Acquisitions and disposals not at market value |
|
|
258 | (1) |
|
|
|
259 | (1) |
|
Post-acquisition benefits |
|
|
259 | (1) |
|
|
|
259 | (1) |
|
|
|
260 | (1) |
|
|
|
260 | (1) |
|
Share option and acquisition schemes |
|
|
260 | (1) |
|
Reform and anti-avoidance |
|
|
261 | (1) |
|
Approved company share option schemes (CSOP) |
|
|
261 | (1) |
|
Share Incentive Plans (SIP) |
|
|
261 | (2) |
|
Enterprise Management Incentive Scheme (EMI) |
|
|
263 | (2) |
|
Unapproved schemes: options and shares acquired at less than their value |
|
|
265 | (1) |
|
Conditional acquistions of shares and convertible shares-pre FA 2003 |
|
|
265 | (1) |
|
Save as you earn share option schemes |
|
|
265 | (1) |
|
|
|
265 | (2) |
|
|
|
267 | (2) |
|
|
|
269 | (14) |
|
|
|
269 | (1) |
|
|
|
269 | (1) |
|
|
|
270 | (1) |
|
|
|
270 | (2) |
|
|
|
272 | (1) |
|
|
|
272 | (2) |
|
|
|
274 | (1) |
|
|
|
274 | (1) |
|
|
|
274 | (1) |
|
Agricultural property relief |
|
|
275 | (1) |
|
|
|
276 | (1) |
|
|
|
276 | (1) |
|
Surviving spouse exemption |
|
|
276 | (1) |
|
|
|
277 | (1) |
|
Interests in possession and reversions |
|
|
277 | (1) |
|
|
|
278 | (1) |
|
|
|
279 | (1) |
|
Relevant Property Settlements |
|
|
279 | (1) |
|
|
|
279 | (1) |
|
Rate of tax on distributions |
|
|
280 | (1) |
|
Ten-yearly charge (`the principal charge') |
|
|
280 | (1) |
|
|
|
281 | (1) |
|
Charges between ten-year anniversaries |
|
|
281 | (1) |
|
Relevant property settlements made before 27 March 1974 |
|
|
281 | (1) |
|
|
|
282 | (1) |
|
PART 3 VALUATION IN PRACTICE |
|
|
283 | (170) |
|
|
|
285 | (20) |
|
|
|
285 | (2) |
|
|
|
287 | (1) |
|
|
|
287 | (2) |
|
|
|
289 | (1) |
|
The capitalisation factor for earnings |
|
|
289 | (1) |
|
|
|
289 | (3) |
|
|
|
292 | (1) |
|
|
|
293 | (1) |
|
|
|
294 | (1) |
|
National Insurance contributions |
|
|
294 | (1) |
|
|
|
295 | (1) |
|
|
|
295 | (1) |
|
|
|
295 | (1) |
|
|
|
295 | (1) |
|
|
|
296 | (1) |
|
|
|
297 | (1) |
|
|
|
298 | (1) |
|
|
|
299 | (1) |
|
|
|
300 | (1) |
|
|
|
301 | (1) |
|
|
|
301 | (1) |
|
Valuations of fixed interest securities |
|
|
302 | (3) |
|
The influence of the Stock Exchange |
|
|
305 | (16) |
|
|
|
305 | (1) |
|
|
|
305 | (1) |
|
Main features of the Financial Services and Markets Act |
|
|
305 | (1) |
|
Recognised investment exchanges |
|
|
306 | (1) |
|
The history of the Stock Exchange |
|
|
307 | (1) |
|
|
|
307 | (1) |
|
Leading stock markets by capitalisation |
|
|
308 | (1) |
|
Official List of the Stock Exchange |
|
|
308 | (1) |
|
|
|
309 | (1) |
|
Methods open to applicants without equity shares already listed |
|
|
310 | (1) |
|
Offer for sale or subscription |
|
|
310 | (1) |
|
|
|
311 | (1) |
|
|
|
311 | (1) |
|
|
|
311 | (1) |
|
|
|
311 | (1) |
|
|
|
311 | (1) |
|
|
|
312 | (1) |
|
|
|
312 | (1) |
|
|
|
313 | (1) |
|
|
|
313 | (1) |
|
|
|
313 | (1) |
|
Disclosure of information |
|
|
314 | (1) |
|
|
|
314 | (1) |
|
Market movements generally |
|
|
315 | (1) |
|
|
|
315 | (1) |
|
|
|
316 | (1) |
|
|
|
317 | (1) |
|
|
|
317 | (1) |
|
Contract awards or cancellations |
|
|
317 | (1) |
|
|
|
317 | (1) |
|
Research, downgrades or upgrades |
|
|
318 | (1) |
|
|
|
318 | (1) |
|
|
|
318 | (1) |
|
Large or significant shareholdings |
|
|
318 | (1) |
|
|
|
319 | (1) |
|
|
|
319 | (1) |
|
The effects of the economic cycle |
|
|
319 | (1) |
|
|
|
319 | (1) |
|
|
|
320 | (1) |
|
|
|
320 | (1) |
|
Discounted cash flow and other methods of valuation |
|
|
321 | (12) |
|
Discounted cash flow (DCF) |
|
|
321 | (1) |
|
Constituents Of A Discounted Cash Flow Valuation |
|
|
321 | (1) |
|
|
|
321 | (1) |
|
|
|
322 | (1) |
|
Weighted average cost of capital (`WACC') |
|
|
323 | (1) |
|
Net present value calculation |
|
|
324 | (1) |
|
|
|
325 | (1) |
|
|
|
325 | (1) |
|
|
|
325 | (1) |
|
Enterprise Value and Equity Value |
|
|
326 | (1) |
|
|
|
327 | (1) |
|
|
|
327 | (1) |
|
What is meant by the term `brand'? |
|
|
327 | (1) |
|
Income based valuation approach |
|
|
328 | (1) |
|
Market-based valuation approach |
|
|
328 | (1) |
|
|
|
328 | (1) |
|
|
|
329 | (1) |
|
|
|
329 | (1) |
|
|
|
330 | (1) |
|
The relief from royalty method |
|
|
330 | (1) |
|
|
|
330 | (1) |
|
|
|
331 | (1) |
|
|
|
331 | (2) |
|
The real market for shares and valuation for specific purposes |
|
|
333 | (10) |
|
|
|
333 | (1) |
|
Private Equity and Venture capital |
|
|
333 | (2) |
|
|
|
334 | (1) |
|
|
|
334 | (1) |
|
Price of recent investment |
|
|
334 | (1) |
|
|
|
334 | (1) |
|
|
|
335 | (1) |
|
Enterprise Investment Scheme |
|
|
335 | (1) |
|
Alternative Investment Market |
|
|
335 | (1) |
|
|
|
336 | (1) |
|
Valuation for specific purposes |
|
|
337 | (1) |
|
Management Buy-outs/Buy-ins |
|
|
337 | (1) |
|
|
|
337 | (1) |
|
Receiverships and liquidations |
|
|
338 | (1) |
|
|
|
338 | (1) |
|
Company buying own shares |
|
|
338 | (1) |
|
|
|
339 | (1) |
|
|
|
340 | (1) |
|
|
|
341 | (1) |
|
CA 2006, ss 593-597 (CA 1985, ss 103-108) |
|
|
341 | (1) |
|
|
|
341 | (2) |
|
|
|
343 | (8) |
|
|
|
343 | (1) |
|
The Importance of published information |
|
|
343 | (1) |
|
|
|
343 | (1) |
|
Financial Times Stock Exchange Indices (`FTSE') |
|
|
344 | (1) |
|
Financial Times Actuaries Share Indices |
|
|
344 | (1) |
|
Basis of compilation of the FT Actuaries Indices |
|
|
344 | (1) |
|
|
|
344 | (1) |
|
Financial Times London Share Service |
|
|
344 | (1) |
|
Stock Exchange Daily Official List (``SEDOL'') |
|
|
345 | (1) |
|
BDO Stoy Hayward Private Company Price Index/Private Equity Price Index (PCPI/PEPI) |
|
|
346 | (1) |
|
Tracing Comparable Companies |
|
|
346 | (1) |
|
A standard industrial classification |
|
|
346 | (1) |
|
Trade directories and magazines |
|
|
347 | (1) |
|
|
|
347 | (1) |
|
|
|
347 | (1) |
|
|
|
347 | (1) |
|
|
|
348 | (1) |
|
|
|
348 | (1) |
|
|
|
348 | (1) |
|
Stock Exchange Daily Official List and Financial Times London Share Service |
|
|
348 | (1) |
|
|
|
349 | (1) |
|
London Business School Risk Measurement Service |
|
|
349 | (1) |
|
|
|
349 | (1) |
|
|
|
350 | (1) |
|
Accounts of unquoted companies |
|
|
350 | (1) |
|
Unpublished information and company records |
|
|
351 | (12) |
|
|
|
351 | (1) |
|
Memorandum and articles of association and shareholders' agreements |
|
|
351 | (1) |
|
|
|
351 | (1) |
|
|
|
352 | (1) |
|
|
|
352 | (1) |
|
|
|
352 | (1) |
|
|
|
353 | (1) |
|
|
|
353 | (1) |
|
|
|
353 | (1) |
|
|
|
353 | (1) |
|
|
|
353 | (1) |
|
|
|
354 | (1) |
|
|
|
354 | (1) |
|
|
|
354 | (1) |
|
|
|
354 | (1) |
|
|
|
355 | (1) |
|
|
|
355 | (1) |
|
|
|
355 | (1) |
|
|
|
355 | (1) |
|
|
|
356 | (1) |
|
|
|
356 | (1) |
|
|
|
356 | (1) |
|
|
|
356 | (1) |
|
|
|
357 | (1) |
|
|
|
357 | (1) |
|
|
|
357 | (1) |
|
|
|
358 | (1) |
|
|
|
358 | (1) |
|
|
|
358 | (1) |
|
|
|
358 | (1) |
|
|
|
359 | (1) |
|
|
|
359 | (1) |
|
|
|
359 | (1) |
|
|
|
359 | (1) |
|
|
|
359 | (1) |
|
|
|
359 | (1) |
|
|
|
360 | (1) |
|
|
|
360 | (1) |
|
|
|
360 | (1) |
|
|
|
360 | (1) |
|
|
|
360 | (1) |
|
|
|
361 | (1) |
|
Liquid asset ratio (acid test ratio) |
|
|
361 | (1) |
|
|
|
361 | (1) |
|
Dividend cover and fixed interest charges cover |
|
|
361 | (1) |
|
|
|
361 | (2) |
|
Valuation of intellectual property and other intangibles |
|
|
363 | (18) |
|
|
|
365 | (1) |
|
|
|
365 | (1) |
|
|
|
366 | (1) |
|
|
|
367 | (3) |
|
OECD Guidelines for multinational enterprises and tax administrations |
|
|
370 | (1) |
|
Transaction based methods |
|
|
370 | (1) |
|
Comparable uncontrolled prices (CUP) |
|
|
370 | (1) |
|
|
|
371 | (1) |
|
|
|
371 | (1) |
|
|
|
372 | (1) |
|
|
|
373 | (1) |
|
|
|
373 | (1) |
|
Royalty comparisons in practice |
|
|
374 | (1) |
|
HMRC Transfer Pricing practice |
|
|
375 | (6) |
|
HMRC Shares and Assets Valuation Section |
|
|
381 | (18) |
|
|
|
381 | (1) |
|
|
|
381 | (1) |
|
|
|
382 | (1) |
|
|
|
382 | (1) |
|
Shares and Assets Valuation file |
|
|
383 | (1) |
|
Information Gathering Units |
|
|
383 | (1) |
|
|
|
383 | (1) |
|
|
|
384 | (1) |
|
The Shares Valuation Manual (SVM) |
|
|
384 | (1) |
|
|
|
384 | (1) |
|
Influential minority holdings |
|
|
385 | (1) |
|
|
|
385 | (1) |
|
|
|
386 | (2) |
|
|
|
388 | (1) |
|
|
|
388 | (1) |
|
|
|
389 | (1) |
|
Yields acceptable to the taxpayer |
|
|
390 | (1) |
|
|
|
390 | (1) |
|
The Shares Valuation and Assets tolerance |
|
|
391 | (1) |
|
|
|
391 | (1) |
|
|
|
391 | (2) |
|
|
|
393 | (1) |
|
Comparison with quoted companies |
|
|
393 | (1) |
|
|
|
394 | (1) |
|
|
|
395 | (1) |
|
Negotiations with Shares and Assets Valuation |
|
|
396 | (1) |
|
|
|
397 | (2) |
|
|
|
399 | (8) |
|
|
|
399 | (1) |
|
|
|
399 | (1) |
|
|
|
399 | (1) |
|
|
|
400 | (1) |
|
|
|
400 | (1) |
|
|
|
400 | (1) |
|
|
|
400 | (1) |
|
|
|
400 | (1) |
|
|
|
400 | (1) |
|
The reasoning behind the valuation |
|
|
401 | (1) |
|
General economic conditions |
|
|
401 | (1) |
|
|
|
401 | (1) |
|
|
|
402 | (1) |
|
|
|
402 | (1) |
|
|
|
403 | (1) |
|
|
|
403 | (1) |
|
|
|
403 | (1) |
|
|
|
403 | (1) |
|
|
|
403 | (1) |
|
|
|
404 | (1) |
|
|
|
404 | (1) |
|
|
|
404 | (1) |
|
|
|
404 | (1) |
|
|
|
404 | (1) |
|
|
|
405 | (1) |
|
|
|
405 | (1) |
|
|
|
405 | (1) |
|
|
|
406 | (1) |
|
Share and Share Option Valuations for Financial Reporting Purposes |
|
|
407 | (14) |
|
|
|
407 | (1) |
|
|
|
407 | (1) |
|
|
|
408 | (1) |
|
|
|
408 | (1) |
|
|
|
408 | (1) |
|
|
|
408 | (1) |
|
Market and non-market conditions |
|
|
408 | (1) |
|
|
|
409 | (1) |
|
Requirements of modified grant date approach |
|
|
409 | (1) |
|
Determination Of Modified Fair Value At Grant Date |
|
|
409 | (1) |
|
Awards of shares without market conditions |
|
|
409 | (1) |
|
Awards of shares with market conditions |
|
|
410 | (1) |
|
|
|
411 | (1) |
|
Awards of share options without market conditions |
|
|
411 | (1) |
|
|
|
412 | (1) |
|
|
|
413 | (1) |
|
Grant date fair value of the option |
|
|
413 | (1) |
|
Exercise price of the option |
|
|
413 | (1) |
|
|
|
413 | (1) |
|
Expected risk-free rate of return over the life of option |
|
|
414 | (1) |
|
Expected volatility of underlying share price over life of option |
|
|
414 | (1) |
|
Expected dividends over the life of the option |
|
|
415 | (1) |
|
Option pricing models - Black-Scholes |
|
|
415 | (1) |
|
Option pricing models - Binomial model |
|
|
416 | (2) |
|
Option pricing models - Comparison |
|
|
418 | (1) |
|
Awards of share options with market conditions |
|
|
419 | (1) |
|
Simple example of Black-Scholes application |
|
|
419 | (2) |
|
Intangible Asset Valuations under International Financial Reporting Standards (IFRS) |
|
|
421 | (12) |
|
|
|
421 | (1) |
|
|
|
421 | (1) |
|
Determination of the fair value of an intangible asset following an acquisition |
|
|
422 | (1) |
|
International Valuation Standards Committee |
|
|
423 | (1) |
|
Market, income and cost approaches |
|
|
423 | (1) |
|
Market transactions method of valuation |
|
|
423 | (1) |
|
Income approach to valuation |
|
|
424 | (1) |
|
Relief-from-royalty method |
|
|
424 | (1) |
|
|
|
425 | (1) |
|
|
|
426 | (1) |
|
|
|
426 | (1) |
|
The tax amortisation benefit |
|
|
427 | (1) |
|
Performance of impairment tests on the carrying values of goodwill and intangible assets |
|
|
427 | (1) |
|
Testing for impairment by reference to fair value less costs to sell |
|
|
428 | (1) |
|
Testing for impairment by reference to value in use |
|
|
429 | (3) |
|
Impairment test disclosures |
|
|
432 | (1) |
|
Valuation in Matrimonial Proceedings |
|
|
433 | (20) |
|
|
|
433 | (1) |
|
|
|
434 | (1) |
|
Valuation in the Context of the Overall Settlement |
|
|
435 | (2) |
|
|
|
437 | (1) |
|
Quoted Shares and Options over Quoted Shares |
|
|
438 | (2) |
|
Taxation: The Powers of the Court |
|
|
440 | (1) |
|
Valuation of a Company in a Start-Up Phase |
|
|
441 | (1) |
|
Use of the Private Company Price Index |
|
|
441 | (2) |
|
|
|
443 | (1) |
|
|
|
443 | (1) |
|
Court's Resolution of Differences Between Experts |
|
|
444 | (2) |
|
|
|
446 | (1) |
|
|
|
447 | (1) |
|
|
|
448 | (2) |
|
Date of Valuation and Other Practical Issues |
|
|
450 | (3) |
|
DIVISION B VALUATION EXAMPLES |
|
|
453 | (2) |
|
Example 1 Mock valuation report in Re Lynall, Lynall v IRC |
|
|
455 | (8) |
|
Capitalisation of dividends |
|
|
460 | (1) |
|
Capitalisation of earnings |
|
|
460 | (1) |
|
|
|
460 | (3) |
|
Example 2 Mock valuation report in Re Holt |
|
|
463 | (12) |
|
Capitalisation of dividends |
|
|
468 | (1) |
|
Capitalisation of earnings |
|
|
468 | (1) |
|
|
|
468 | (1) |
|
|
|
469 | (1) |
|
John Holt & Co (Liverpool) Ltd Years ended 30 September |
|
|
469 | (1) |
|
John Holt & Co Ltd Consolidated balance sheet at 30 September |
|
|
470 | (1) |
|
John Holt & Co (Liverpool) Ltd and subsidiary companies Profit and loss account for years ending 30 September |
|
|
471 | (1) |
|
Note on the accounts of the holding company and its subsidiaries at 30 September 1948 |
|
|
472 | (3) |
|
Example 3 Sparkco Ltd - fair value |
|
|
475 | (6) |
|
Example 4 Diplodocus Ltd - valuation of deferred shares at 13 April 1998 |
|
|
481 | (3) |
|
Example 5 Salamander Marketing Consultants Ltd - valuation of shares for tax purposes |
|
|
484 | (11) |
|
|
|
495 | (2) |
|
Appendix A Financial Times Actuaries Share Indices |
|
|
497 | (15) |
|
Appendix B Financial Times Actuaries Equity Indices - at 31 March 1982 |
|
|
512 | (2) |
|
Appendix C Financial Times Actuaries Share Indices and their constituents |
|
|
514 | (35) |
|
Appendix D Relevant estate duty and other obsolete legislation (see 9.01) |
|
|
549 | (6) |
|
|
|
549 | (1) |
|
|
|
549 | (1) |
|
F (1909-10)A 1910 s 60(2) |
|
|
549 | (1) |
|
|
|
549 | (1) |
|
|
|
550 | (2) |
|
|
|
552 | (1) |
|
F(1909-10)A 1910 s 25 (re obsolete duties on land values) |
|
|
553 | (2) |
|
Appendix E United States of America Internal Revenue Service Rulings |
|
|
555 | (25) |
|
|
|
555 | (1) |
|
|
|
555 | (1) |
|
Background and definitions |
|
|
555 | (1) |
|
|
|
555 | (1) |
|
|
|
556 | (4) |
|
Weight to be accorded various factors |
|
|
560 | (1) |
|
|
|
560 | (1) |
|
|
|
561 | (1) |
|
|
|
561 | (1) |
|
|
|
561 | (1) |
|
|
|
562 | (1) |
|
|
|
563 | (1) |
|
|
|
563 | (1) |
|
|
|
563 | (1) |
|
Background and definitions |
|
|
563 | (1) |
|
Securities industry practice in valuing restricted securities |
|
|
564 | (2) |
|
Facts and circumstances material to valuation of restricted securities |
|
|
566 | (1) |
|
Weighing facts and circumstances material to restricted stock valuation |
|
|
567 | (1) |
|
Revenue Ruling 80-213 ``Stapled,'' ``paired,'' or ``back-to-back'' stock; valuation |
|
|
568 | (1) |
|
Section 301.---distributions of property, 26 cfr 1.301-1: rules applicable with respect to distribution of money and other property |
|
|
568 | (1) |
|
|
|
568 | (1) |
|
|
|
568 | (1) |
|
|
|
569 | (1) |
|
|
|
569 | (1) |
|
Effect on other documents |
|
|
570 | (1) |
|
|
|
570 | (1) |
|
Valuation; stock; closely held business |
|
|
570 | (1) |
|
Section 2512 - valuation of gifts, 26 cfr 25.2512-2: stocks and bonds |
|
|
570 | (1) |
|
|
|
571 | (1) |
|
|
|
571 | (1) |
|
General approach to valuation |
|
|
571 | (1) |
|
Approach to valuation-preferred stock |
|
|
572 | (1) |
|
Approach to valuation - common stock |
|
|
573 | (1) |
|
Effect on other revenue rulings |
|
|
574 | (1) |
|
|
|
574 | (1) |
|
Valuation; stock; intrafamily transfers; minority discounts |
|
|
574 | (1) |
|
26 CFR 25.2512-1: Valuation of property; in general |
|
|
574 | (1) |
|
|
|
574 | (1) |
|
|
|
574 | (1) |
|
|
|
574 | (1) |
|
|
|
575 | (1) |
|
Effect on other documents |
|
|
575 | (1) |
|
|
|
575 | (1) |
|
|
|
575 | (2) |
|
|
|
|
|
|
577 | (3) |
|
Appendix F RICS Valuation Standards |
|
|
580 | (8) |
|
|
|
580 | (1) |
|
|
|
580 | (1) |
|
|
|
580 | (1) |
|
The member must determine the basis of value that is appropriate for every valuation to be reported |
|
|
580 | (1) |
|
|
|
581 | (3) |
|
Valuations based on Market Value (MV) shall adopt the definition, and the conceptual framework, settled by the International Valuation Standards Committee |
|
|
581 | (3) |
|
|
|
584 | (1) |
|
Valuations based on Market rent (MR) shall adopt the definition settled by the International Valuation Standards Committee |
|
|
584 | (1) |
|
Worth and investment value |
|
|
585 | (1) |
|
Valuations based on worth, or investment value shall adopt the definition settled by the International Valuation Standards Committee: |
|
|
585 | (1) |
|
|
|
586 | (2) |
|
Valuations based on fair value shall adopt the definition settled by the International Valuation Standards Committee |
|
|
586 | (2) |
|
Appendix G Parry's Valuation Tables - Present value of one pound |
|
|
588 | (18) |
|
Appendix H Parry's Valuation Tables - Years' purchase or present value of one pound |
|
|
606 | (11) |
| Index |
|
617 | |
