Valuation Assumptions Sample Clauses
Valuation Assumptions. (I) General assumptions:
1. Transaction assumption: all assets to be valued are assumed to be in the transaction process and valuers conduct the valuation according to simulated market conditions such as transaction conditions of the assets to be valued.
2. Open market assumption: open market assumption is an assumption about conditions of a market into which assets are proposed to be entered and effects of such market conditions on assets. An open market means a well-developed, comprehensive and competitive market with willing buyers and willing sellers acting voluntarily and rationally at arms’ length, having sufficient opportunities and time to obtain market information and under no compulsion or restrictions to buy or sell.
3. Continuous use assumption: the continuous use assumption is an assumption made on the conditions of the market where the assets are intended to enter into as well as the status of the assets in such market conditions. It is first assumed that the assets to be appraised are in use, and it is further assumed that the assets that are in use will be used continuously. Under continuous use assumption, no consideration is given to the conversion of the use of the assets or utilisation of the assets under the best condition. Thus, the valuation results are subject to a restricted scope of applicability.
4. Going concern assumption: it is an assumption made by taking the whole assets of an enterprise as the appraised entity. In this way, the enterprise operates continually in pursuit of its operation objective under its external environment as the main operating entity. The management of the enterprise is responsible for and capable of taking responsibility. The enterprise operates legally and makes appropriate profits to maintain the capability of going concern.
(II) Valuation assumptions under the income approach:
1. There is no significant change in the relevant existing laws, regulations and policies of the country, or in the macroeconomic conditions of the country. There is no significant change in the political, economic and social environment in which the parties to this transaction are situated, and there are no material adverse impacts arising from other unforeseeable factors or force majenre.
2. Assuming the company to operate as a going concern based on the actual status of the assets as at the valuation base date.
3. Assuming the management of the company to be responsible and have the capability to take on their duties.
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Valuation Assumptions. For the valuation performed based on the income approach, the Valuer has adopted the following valuation assumptions:
Valuation Assumptions. For this valuation, the valuers have followed the following valuation assumptions:
I) General Assumptions
1. Transaction Assumption Transaction assumption is to assume that all the assets to be valued are already in the process of transaction and the valuer carries out the valuation based on a simulated market which involves the transaction conditions of the assets to be valued. Transaction assumption is the basic assumption for the valuation of assets.
Valuation Assumptions. The valuation results depend on the assumptions used. There are two broad categories of assumptions: ▪ financial assumptions - such as the investment return that will be earned in the future and the rates at which earnings and pensions will increase; and ▪ demographic assumptions - such as rates of mortality, retirement, and withdrawal from the Fund.
Valuation Assumptions. Clause (6) in the definition of “Valuation Assumptions” in Section 1.1. of the Agreement is hereby amended and restated in its entirety as follows:
Valuation Assumptions. There will be no further Exchanges from and after the Early Termination Notice.
Valuation Assumptions. The valuer has assumed that the following prerequisites are satisfied as at the Valuation Benchmark Date in accordance with the requirements for asset valuation:
(i) Open market assumption The assets can be freely traded in a fully competitive market, with their prices depend on the value judgment of the assets made by independent parties to the transaction under the supply and demand conditions of a certain market;
(ii) Transaction assumption It is assumed that all valuation targets are in the process of simulated transactions;
(iii) Assumption of continuing usage of the asset at the original location The assumption of continuing usage at the original location refers to the assumption that the asset will remain in the original place or the original place of installation for continuous use;
(iv) Existing purpose assumption The existing purpose assumption refers to the assumption that the assets will continue to be used for their existing purpose;
(v) No material defaults occurred during the lease term of the signed leases of the investment properties held by the long-term investment unit under the property-holding entity;
(vi) During the future operating period, the valuation object will be able to stabilize its operations and generate revenue;
(vii) The circumstances and information provided by the party commissioning the appraisal to the valuation agency, which are necessary for the valuation of the real estate, are true and reliable;
(viii) It is assumed that the status of the subject of valuation at the time of valuation is consistent with that on the date of completion of the on-site inspection;
(ix) It is assumed that the real estate interest is not subject to other rights and restrictions that may affect its value;
(x) There will be no major changes in the macro-political, economic and social environment of the target company’s location;
(xi) There will be no major changes in exchange rates, interest rates, tax burdens, inflation, population and industrial policies;
(xii) There will be no major changes in the current laws, administrative regulations, policies and social and economic environment followed by the enterprise;
(xiii) The market and technology of the industry and field in which the enterprise is located are in a normal state of development, and there are no major sudden changes in the market or technology;
(xiv) The main operating assets of the enterprise can be effectively used and will not be idle or otherwise ineffectively utilized;
(x...
Valuation Assumptions. For the purposes of Section 7.1: Units of a Fund subscribed for shall be deemed to be outstanding as of the time a subscription for Units is received by or on behalf of the Fund and the amount received or receivable by the Fund shall thereafter be deemed to be an asset of the Fund; and Units of a Fund for which a request for redemption or exchange has been received by or on behalf of the Fund are deemed to be outstanding until (and not after) the close of business on the day on which the Net Asset Value thereof is determined and thereafter, until paid, the Net Asset Value of such Units is deemed to be a liability of the Fund and the total number of Units outstanding shall be adjusted accordingly. The Series Net Asset Value and Series Net Asset Value per Unit shall reflect a reduction to take into account any management or performance fees payable to the Manager by a Fund, as applicable, that has accrued to the relevant Valuation Date.
Valuation Assumptions