CBV Institute’s adoption of International Valuation Standards (IVS) is a testament to the Institute’s commitment to increasing consistency and quality within the global valuation profession and marks a transformative step in elevating the global reach and flexibility of the CBV profession.
Toronto, Ontario – November 1, 2023 – Chartered Business Valuators Institute (CBV Institute) proudly announces the landmark decision of its Board of Directors to adopt International Valuation Standards (IVS) as an optional framework for business valuation practice. The decision to adopt IVS (which are developed and issued by the International Valuation Standards Council (IVSC)) as part of the Institute’s suite of acceptable practice standards for valuation, comes after a multi-year stakeholder consultation process. Starting immediately, CBVs have the option of using either IVS or CBV Institute’s existing valuation Practice Standards for valuation engagements (Standards 110, 120, and 130), thereby elevating the global reach of the CBV profession and solidifying CBV Institute’s commitment to a strong global valuation profession by making IVS acceptable for use in Canada.
“The adoption of IVS is a significant milestone for CBV Institute,” said Dr. Christine Sawchuk, President and CEO, CBV Institute. “It aligns with our commitment to uphold the highest standards in business valuation practice, both in Canada and internationally. Introducing IVS as part of CBV Institute’s suite of acceptable practice standards provides CBVs the flexibility to choose between IVS and CBV Institute’s existing, world-class valuation standards, based on the unique needs of their clients. This adoption is an important step forward by the Institute, whose members have been active participants on IVSC boards for decades, shaping the current version of IVS.”
Nicholas Talbot, CEO of the International Valuation Standards Council (IVSC), reacted: “We are delighted to see CBV Institute formally adopting International Valuation Standards. As a mature valuation professional organization with a deep history, CBV Institute’s adoption of IVS contributes significantly to the harmonization of valuation standards globally. It’s a major step forward for the valuation profession at large. CBV Institute and CBVs have had a leading role in shaping IVS into what they are today – the leading internationally-recognized standards for valuations of all asset types, including business valuation.”
IVS are rooted in the public interest and are a robust set of standards that address the development and reporting of a valuation conclusion. The acceptance of IVS as an optional valuation framework is beneficial to CBVs and the CBV profession. CBVs are increasingly providing valuation services for clients outside the Canadian marketplace, and IVS are rapidly gaining recognition and acceptance in international markets. This, coupled with the increased presence of CBVs and around the globe, means that there will be an increased need for CBV practitioners to meet the requirements of IVS, as well as increased opportunities for those CBVs who are able to do so.
Application and use of IVS, or any other set of valuation standards, must be done by a qualified valuator, with appropriate experience and training, as well as professional judgement. As such, IVS do not replace the need for professional business valuation education, training, and accreditation.
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IVS are a set of globally recognized standards for valuing various types of assets and liabilities. These standards provide a framework for valuers, financial professionals, and organizations to ensure consistency, transparency, and reliability in the valuation process. IVS are developed and maintained by the IVSC, an independent global organization, though its volunteer boards of leading international experts, and are developed via an open and transparent process through public consultation. IVS are used as a framework for valuation in markets throughout the world and by valuation professionals in more than 100 countries, and have been adopted and/or endorsed by numerous professional organizations, firms, and regulators worldwide.
About CBV Institute
Since 1971, CBV Institute has led the Chartered Business Valuator (“CBV”) profession – Canada’s only designation dedicated to business valuation. CBV Institute upholds the highest standards of business valuation practice through education, accreditation, and governance of the CBV designation, for the benefit of the public interest. CBV Institute is a leader in the international valuation community and is committed to advancing professional excellence for business valuation globally. CBV professionals are internationally recognized as having the judgment and analytical training necessary for a wide range of valuation-based needs.
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The International Valuation Standards Council (IVSC) is a not-for-profit global organisation committed to advancing International Valuation Standards and elevating valuation professionalism. In the intricately linked global financial environment of today, the IVSC emphasises the importance of a consistent approach and adherence to internationally recognised standards for the valuation of all assets and liabilities. Our mission is to bolster financial stability, facilitate sound business and investment decisions, and serve the public interest by ensuring clarity and uniformity in valuation standards. Supported by, and collaborating with stakeholders across the valuation landscape, the IVSC engages with Valuation Professional Organisations, regulators, valuation firms, academic bodies, and end users. The International Valuation Standards are developed by boards comprised of volunteer international experts and through public consultations. These standards provide the foundation for valuations conducted by professionals in over 100 countries.