When you need a valuation: ESOPs, fundraising, ODI and acquisitions

Valuations are triggered by accounting standards, tax rules, regulators and investors. Here is each trigger, what standard applies, and who may sign.

A calculator, glasses and printed financial charts on a desk

The short answer

  • Singapore accounting triggers: acquisitions (purchase price allocation), impairment testing, share-based payments.
  • Transaction triggers: fundraising, share transfers, shareholder disputes, exits.
  • India-side triggers: buying existing foreign shares under ODI, Indian tax and FEMA pricing. Indian rules name who may sign.
  • One model can serve both sides; the signatures differ.

The triggers

Exhibit 1
The triggers
TriggerStandard or ruleWho signs
Acquisition of a businessSFRS(I) 3 or FRS 103 purchase price allocationIndependent valuer; reviewed by the auditor
Goodwill or asset impairmentSFRS(I) 1-36 or FRS 36Management, often with a valuer
Employee share optionsSFRS(I) 2 or FRS 102Independent valuer
Fundraising, share transfersInternational Valuation StandardsIndependent valuer
Indian company buying existing foreign sharesOverseas Investment RulesAs the rules require
Indian income tax (unquoted shares, ESOP perquisites)Income-tax Rules, 2026 (Rule 57 and related rules)Often a SEBI-registered merchant banker

What a good valuation report contains

  • The purpose and the standard of value
  • Methods used and why, with cross-checks
  • Every key assumption with its source
  • Sensitivity to the assumptions that matter
  • A clear statement of what it may and may not be relied on for

No valuer can promise an auditor will accept a number. A good report makes it quick to test.

What to send the valuer

  • The purpose, the valuation date and who will rely on the report
  • The cap table, share classes and the rights attached to each
  • Historical financial statements and the latest management accounts
  • The board-approved budget or forecast, with the main assumptions
  • Details of recent share transactions, funding rounds or offers
  • Key contracts, customer concentration and any known risks

How long it takes

A straightforward share or ESOP valuation, with information ready, usually takes two to three weeks. A purchase price allocation for an acquisition takes longer, because each intangible is valued and the auditor reviews the work. Start before the deadline that depends on it: the audit, the grant date or the bank filing.

Questions people ask

When does a Singapore company need a valuation?

After an acquisition (purchase price allocation), for impairment testing, for share options, and for fundraising, share transfers and exits.

Who signs valuations for Indian regulatory purposes?

Indian rules name the signatory, for example a SEBI-registered merchant banker, a registered valuer or a chartered accountant, depending on the purpose.

Need a valuation?

Tell us the purpose and the deadline. We confirm the standard, the scope and who must sign, before you commit.

Sources

  1. Corporate Professionals: Valuation under the Income-tax Rules, 2026 (secondary source)
  2. RBI: Foreign Exchange Management (Overseas Investment) Rules, 2022

General information only, last reviewed 11 November 2026. It is not advice for your situation. Laws and practice change, and the official sources linked above prevail. Speak to a qualified adviser before you act. Northwise does not file with Indian authorities; India-side work is done by independent licensed firms.