Annex 5
Valuation of Unlisted Equity
- Auteur(s):
- OCDE
-
-
-
Pages
:
-
174–179
-
DOI
:
-
10.1787/9789264045743-15-en
Cacher /
Voir
l'abstract
The underlying principle for the valuation of equity is the market value of that equity. Listing in an organised market provides a good basis for valuing listed equity. However it can be more difficult to determine a market value for unlisted equity and illiquid listed equity. In any case, if there has been a material change in an enterprise’s financial position since the date to which the valuation applies (but before the reference date), an adjustment may need to be made. Examples of such material events include an unexpected decision in a lawsuit, credit downgrade or upgrade, major new invention or mineral find, or bankruptcy.