Valuation Standards Board of ICAI (VSB ICAI) and ICAI Registered Valuers Organisation (ICAI RVO) has come out with a publication on ‘Frequently Asked Questions (FAQs) on Valuation’ for guidance of the Valuation Professionals, i.e. Registered Valuers, in understanding the concept and nuisances of valuation and preparation of valuation reports in line with the valuation standards.
ICAI FAQs on Valuation, Standards, Reports by Registered Valuers (dt. 9 April, 2019)
There is always a saying that Valuation is neither a pure Art nor a pure science but a perfect combination of both.” In the valuation process, Valuer values the organization by using technology, applying specific methods of valuation (which can be termed as part of Science) and his own experience in taking various assumptions i.e. an Art.
The publication has been designed in a question and answer format to assist our members and other stakeholders to enable them to have conceptual clarity on the various Valuation aspects. This publication comprehensively covers questions that are being asked while undertaking Valuation of Securities or Financial assets.
Index of Contents
Chapter 1 Registered Valuer concept as per Section of the Companies Act 2013 and Rules thereunder
Chapter 2 Registered Valuers Organisation
Chapter 3 Introducing Valuation
Chapter 4 Valuation Report
Chapter 5 ICAI Valuation Standards 2018
Chapter 6 Financial Ratios
Chapter 7 Penal Provisions
Chapter 8 Important Judicial Pronouncements in Valuation
Appendix A Section 247 of the Companies Act, 2013 as on 31.01.2019
Appendix B Companies (Registered Valuers and Valuation) Rules, 2017
Appendix C A Sample Valuation Report
Appendix D A Sample Engagement Letter
Appendix E Illustrative List of Assumptions and Limiting Conditions
Appendix F A Sample Management Representation Letter