CBV Institute’s updated Practice Standards for independent valuation conclusions are now in effect for engagements beginning on or after January 1, 2026. The revisions strengthen valuation quality, enhance transparency, and reflect the evolving expectations of stakeholders who rely on independent business valuations to support critical decisions. The new standards follow the culmination of a rigorous multi-year process, including three consultation periods and reflects feedback from a broad cross-section of stakeholders.
The updated framework includes updates to Practice Standards Nos. 110, 120, and 130, a new Practice Standard No. 100, and application guidance in Practice Bulletin No. 3. Together, these changes reinforce the importance of valuations that are fit for purpose, credible and properly supported, while preserving the core principles-based structure that has long underpinned valuation practice for the CBV profession.
“These updates represent a thoughtful evolution of our practice standards,” said Catalina Miranda, VP, Regulatory and Standards at CBV Institute. “They are targeted improvements that respond to how valuations are being used, scrutinized, and relied upon today. As stakeholder expectations continue to rise, it is essential that our standards continue to clearly support consistency, credibility, and public confidence.”
A central feature of the updated framework is the new Practice Standard No. 100 (PS 100), which establishes a principles-based foundation for all levels of valuation conclusions – Calculation, Estimate and Comprehensive. PS 100 emphasizes independence, objectivity, professional skepticism, competence in business valuation, and informed professional judgment. PS 100 emphasizes the valuator’s responsibility to conduct an appropriate scope of work that is driven by the intended purpose and users of a valuation. For all levels of conclusions, scope of work consists of review, inquiry, analysis, and independent corroboration of significant relevant information of the business, its industry, and any other factors relevant to the valuation.
The updated standards also strengthen expectations for calculation-level valuation engagements. While calculation reports remain appropriate in certain circumstances, the revised requirements highlight that even at a Calculation level (the least extensive scope of work), significant inputs and assumptions must be supported and industry and economic factors relevant to the valuation must also be considered. The new standards strengthen file documentation requirements and report disclosure for all levels of conclusions.
The updated standards also introduce new requirements for a quality review process, in line with global best practices and International Valuation Standards (IVS). Many of the refinements, including the quality review requirement, are supported by learnings from CBV Institute’s proactive self-regulatory efforts – namely, the experiences from conducting practice inspections over the last several years.
The new valuation standards, along with the legacy standards, are available on CBV Institute’s website. CBV practitioners also have access to supporting materials (webinar, checklist) designed to assist them in applying the changes.
“These changes are grounded in real-world best practices,” said Trevor Hood, Chair of CBV Institute’s Professional Practice Standards Committee. “They strengthen requirements and clarify expectations, particularly in Calculation level reports, while retaining the critical importance of professional judgment in assessing the significance of particular inputs and assumptions in line with the facts and circumstances of each engagement.”
CBV practitioners will continue to have the option to “opt into” and use International Valuation Standards, standards which CBV Institute formally adopted in 2023, in lieu of Practice Standards No. 100, 110, 120, and 130.