When the revised Valuation Practice Standards take effect on January 1, 2026, members will be working under a new structure. At the heart of this framework is Practice Standard No. 100 (PS 100) – a new standard that sets out foundational concepts for all Valuation Conclusions and Valuation Reports. 

What’s New

A Principles-Based Framework

  • PS 100 establishes key foundational concepts for business valuations. 
  • It sets out key principles of independence, objectivity, professional skepticism, competence and informed professional judgment. Emphasizing these principles strengthens public confidence and reinforces their importance for valuators alike. 

Levels of Valuation Conclusions

  • PS 100 redefines the three levels of Valuation Conclusions, distinguished by the depth of the Scope of Work, and specifically, the extent of independent corroboration: 
     
    • Comprehensive – most extensive scope, high level of independent corroboration. 
    • Estimate – substantial scope, moderate level of independent corroboration. 
    • Calculation – less extensive scope, limited level of independent corroboration, but only appropriate in certain circumstances. 
  • However, regardless of level, Members must undertake appropriate work to support significant inputs and assumptions, including for Calculation-level Valuations. 
  • The standard makes clear that Members must consider the intended users and purpose of the valuation, as well as the facts and circumstances of the engagement – including the availability and reliability of information – in determining the appropriate Scope of Work and determining the “significant” inputs and assumptions.  

Oral Valuation Conclusions

  • A Valuation Conclusion may be communicated orally, without any accompanying written work product provided.  
  • In the (more rare) circumstances where a conclusion is provided strictly orally, it must still comply with PS 100, PS 120, and PS 130, and the valuator must document in working papers what was communicated. 
  • “Schedules” are considered written work products and must comply with PS 110.  

Why the Changes are Important 

  • Foundation: PS 100 establishes the principles-based framework for the entire 100-series, defining what constitutes a valuation, when the Practice Standards apply, and emphasizing the importance of professional judgment. 
  • Fit-for-Purpose: The new standards shift focus from the “Valuation Report” to the “Valuation Conclusion” and the work performed to arrive at the conclusion. They reinforce that the work should be “fit-for-purpose”; driven by the intended purpose and users of the valuation, not by the report label (Calculation, Estimate, or Comprehensive). 
  • Credibility: Greater emphasis on independent corroboration, skepticism, and professional judgment strengthens public trust in valuation conclusions. 

Action for Members 

  • Exercise sound professional judgment: The Institute’s objective with the PS 100 revisions is to refocus practitioners on performing the appropriate scope of work for the facts and circumstances of each valuation, including an appropriate amount of independent corroboration – the needs of the intended users should drive the work, rather than the “level” of valuation conclusion. For any valuation, practitioners should ask themselves whether the scope of work will be sufficient to meet the needs of intended users.  
  • Strengthen practices: If you ever deliver a conclusion orally, ensure your processes include documentation and appropriate disclosure.  
  • Update terminology and disclosures: Update engagement planning materials to reflect the new PS 100 definitions and the classification of levels of conclusion. Ensure reports capture the appropriate Scope of Work, level of conclusion, and disclosure requirements (e.g., if IVS is followed, disclose compliance with IVS). 

PS 100 is not just another standard – it is the anchor of the new valuation framework. Understanding it now will ensure Members are ready to apply the 2026 standards with confidence and consistency. 

Further resources: 

  • The new Practice Standard No. 100, effective January 1, 2026  
  • A free on-demand webinar on the Valuation Practice Standards will be available in early December, stay tuned to CBV Matters.

This article highlights key elements of PS 100, but it is not a substitute for reading the standard itself. As Members, you are responsible for reading the new Practice Standards in full and ensuring you understand their requirements. All references to Members apply equally to Registered Students of CBV Institute. 

 

 

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