This module covers in some detail the most common basis of valuation known as market value (IVSC and RICS Red Book) and as fair value in financial reporting standards (e.g. IFRS 13 and the FASB standard formerly known as SFAS 157 - now called SFAS Topic 820). We also address the major issues which fair value reporting has raised over the past few years.
In addition to fair value, market value and fair market value, we explain other valuation bases (see documentation below), including investment value, synergistic value and special value, as well as other types of value such as intrinsic value, breakup value, salvage value and standalone value.
We examine the International Valuation Standards Framework and the IVSC's overarching structure of valuation and asset standards. We also cover the IVSC's valuation and asset applications, making comparisons between the following sets of standards:
- International Valuation Standards
- Uniform Standards of Professional Appraisal Practices (USPAP)
- Royal Institution of Chartered Surveyors (RICS) Red Book
- OECD Tax Valuation Guidelines
- International Private Equity and Venture Capital Guidelines (IPEV)
- US / IFRS Reporting Standards (IFRS 13 / SFAS Topic 820)
- ASA Business Valuation Standards