International Valuation Guidance
About this eBook
The International Valuation Standards Committee IVSC adopted this Guidance Note GN to improve the consistency and quality of business valuations among the international community for the benefit of users of financial statements and users of business valuations.
1.3 In general the concepts, processes, and methods applied in the valuation of businesses are the same as those for other types of valuations. Certain terms may have different meanings or uses. Those differences become important disclosures wherever they are used. This GN sets forth important definitions used in business valuations. 1.4 Care should be taken by Valuers and users of valuation services to distinguish between the value of a business entity, the valuation of assets owned by such an entity, and various possible applications of business or going concern considerations encountered in the valuation of real property interests. An example of the latter is valuations of property with trading potential. See Property Types, para. 4.3.2. 2.0
This GN is provided to assist in the course of rendering or using business valuations.
In addition to the elements that are common to other GNs to the International Valuation Standards, this GN contains a more expansive discussion of the business valuation process. This is included to typify what is commonly involved in business valuations and to provide a basis of comparison with other types of valuations, but the dis-
Guidance Note 6
1.2 Business valuations are commonly sought and performed on the Market Value basis of valuation applying the provisions of International Valuation Standard 1 IVS 1 . Where other bases of valuation are used, with proper explanation and disclosure, the provisions of IVS 2 are applied.
International Valuation Standards, Sixth Edition cussion should not be considered as either mandatory or limiting except as provided in this GN or otherwise in the International Valuation Standards. 2.3
Because other basic valuation principles, International Valuation