Benefits of a donation to a donor-advised fun

If you are not the artist and have owned a work of art or other collectible for longer than a year as an investment, you may be able to receive the following advantages from donating it to a donor-advised fund:

Bankruptcy and Liquidations

One of the key components of the corporate bankruptcy resolution process under the Insolvency and Bankruptcy Code, 2016, is asset valuation (Code).

But the Insolvency and Bankruptcy Board of India (Board), in relation to provisions relevant to asset value as specified under the Code and the Regulations, still has to provide a number of clarifications.

The lack of consensus over how the word "liquidation value" should be interpreted under the Code is one of the major debates surrounding asset valuation.

The Insolvency and Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016 (CIRP Regulations) define the phrase "liquidation value" as "the estimated realisable value of the corporate debtor's assets if the corporate debtor were to be liquidated on the insolvency commencement date."

The procedure for calculating liquidation value is outlined in Regulation 35(2) of the CIRP Regulations.

According to a cursory reading of the definition, liquidation value is the hypothetical realisable value that the corporate debtor's assets would bring in if the corporate debtor were to be liquidated on the insolvency commencement date (and not the value that may be actually realised under a resolution plan).

The confusion emerges, nevertheless, when comparing estimating "estimated realisable value" in the context of the bankruptcy resolution process to valuation in a full asset liquidation.

A valuation report often includes multiple sale prices for an asset based on valuation under various scenarios. For instance, a valuation report can include information on an asset's fair market value, realisable value, and value at a distressed sale.

The difficulty of the task faced by registered valuers (appointed under the Code) and insolvency professionals performing their duties as interim resolution professionals (IRP) or resolution professionals (RP) in determining the nature of asset value that should be considered as liquidation value for purposes of Regulation is made even more difficult by the abundance of valuation jargon and terminology. The determination of 'liquidation value' of assets is an extremely crucial exercise, keeping in view its practical implication on the resolution plan, claims of creditors and prospective investors.