In response to market feedback received since the publication of the International Valuation Glossary – Business Valuation (the “Glossary”) in November 2021, the working group updated the Glossary on February 24, 2022. Substantively, the document was revised to include three (3) terms which had been inadvertently omitted from the November 2021 publication, as well as to address minor editorial corrections. The additional terms are Valuation Method, Valuation Model, and Value in Exchange. Parallel updates have been made to CBV Institute’s Practice Bulletin No. 2, including some other translation revisions (including an updated FR translation of the term Fair Market Value).
The working group contemplates revisions to the Glossary from time to time. As a reminder, the Glossary was developed as part of ongoing efforts to harmonize definitions for terms used in business valuation. It is intended to be a reference tool to facilitate communication within the business valuation profession and with relevant stakeholders and users. The Glossary is designed to be helpful, but neither authoritative nor prescriptive.
CBV Institute is pleased to announce the publication of a new international glossary of terms used in the business valuation profession. The International Valuation Glossary – Business Valuation was a joint effort between several global Valuation Professional Organizations (VPOs). This glossary aims to update and harmonize definitions for business valuation and intangible asset terms for the benefit of the global business valuation profession and users of valuation services. It’s goal is to provide a common understanding of technical terms used within the various sub-practice areas of business valuation, and for those operating in different markets.
The working group was comprised of representatives from CBV Institute, the American Society of Appraisers (ASA), the Royal Institute of Chartered Surveyors (RICS), the Saudi Authority for Accredited Valuers (TAQEEM), and the International Valuation Standards Council (IVSC). Members of the working group included individuals with experience in professional practice and standards-setting, as well as active valuation practitioners. Many other organizations were consulted and provided input throughout the process, including for example representatives of The Appraisal Foundation (TAF), The National Association of Certified Valuators and Analysts (NACVA), The Institute of Valuers and Appraisers, Singapore (IVAS), and the International Institute of Business Valuers (iiBV), just to name a few.
Each of the four VPOs in the working group (CBV Institute, ASA, RICS, TAQEEM) will be moving to adopt the document. It is hoped that the glossary becomes widely used by all VPOs and in the marketplace broadly. The glossary represents the culmination of a broad consultative process. A draft version of the document was published in December 2020 via an Invitation to Comment. Close to 40 comment letters were received from individual valuation professionals, valuation firms both large and small, and VPOs from countries all over the world. This final version represents an ongoing and active international effort that has spanned over 2 years.
Interested in learning more? Check out the video interview with working group members below.
Click here to download the International Glossary (as drafted & updated).
CBV Institute has adopted the International Glossary (with some Canada-only terms), as Practice Bulletin No 2, for use by its Members as Students.