Blocking Regulation and Net asset value: Difference between pages

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''Sanctions''.
(NAV).  


The Blocking Regulation is a 1996 European Union (EU) Regulation which prohibits EU companies from complying with certain extraterritorial US sanctions.
1.


A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.


<span style="color:#4B0082">'''''Managing conflicting rules'''''</span>
The current balance sheet of the business would normally be the starting point for a net asset valuation.


:"The US's reimposition of sanctions against Iran prompted the European Commission to expand the scope of the 1996 EU Blocking Regulation.
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.  


:The revised Blocking Regulation... in essence prohibits EU companies from complying with the reimposed US sanctions against Iran.
Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).




:The Blocking Regulation is often described as putting those within its scope (EU companies, nationals and others within the EU) between a rock and a hard place.
2.


:Non-compliance may give rise to civil and, potentially, criminal penalties.
Similar valuation methods applied to other entities.
 
:However, the penalties for a non-US person failing to comply with the US's secondary sanctions can include being cut off from the US financial system - and being unable to deal with US persons."
 
:''The Treasurer, October 2018, p43 - Slaughter and May.''




== See also ==
== See also ==
* [[Accumulating net asset value]]
* [[Book value]]
* [[Constant net asset value]]
* [[Going concern]]
* [[Gone concern]]
* [[Investment trust]]
* [[Low-volatility NAV]]
* [[Net]]
* [[Tangible net worth]]
* [[Variable net asset value]]


* [[European Commission]]
[[Category:Investment]]
* [[European Union]]
* [[Extraterritorial]]
* [[Regulation]]
* [[Sanctions]]
* [[United States]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Ethics]]

Revision as of 17:51, 11 February 2022

(NAV).

1.

A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.

The current balance sheet of the business would normally be the starting point for a net asset valuation.

The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.

Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


2.

Similar valuation methods applied to other entities.


See also

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