ICAI invites comments on Valuation Standards
The Institute aims to endorse transparency, objectivity, independence in its working
The Institute of Chartered Accountants of India (ICAI) has invited comments for the draft on Indian Valuation Standards released by Valuation Standards Board (VSB) of ICAI. The Institute through VSB has formulated valuation standards meant for financial transactions such as merger & acquisition, buying/selling of properties, solvency and many such activities.
Valuation of business, financial instruments and other assets is gaining importance now and is considered as one of the most critical areas in finance, in particular after the implementation of Ind-AS. It plays a key role in financial reporting and in other areas of finance such as buy/sell, solvency, merger and acquisition. It also has a crucial role in the Insolvency Resolution (IR) regime where liquidation value has to be ascertained by Resolution professional through the registered valuers.
Keeping this in mind, ICAI constituted Valuation Standards Board in 2018 with an objective to formulate Indian Valuation Standards, providing interpretations, guidance and technical materials from time-to-time and implementation of the standards.
The draft among many other aspects includes:
* Framework for the Preparation of Valuation Report
* Valuation Bases
* Draft Standard on Business Valuation
* Draft Standard on Intangible Assets
* Draft Standard on Financial Instruments