Chapter 15

Canadian Institute of Chartered Business Valuators Practice Standards

The Canadian Institute of Chartered Business Valuators (CICBV) issues Practice Standards. The current version is dated June 17, 2009. The Practice Standards contain both mandatory and recommended provisions along with a significant amount of commentary. The CICBV also occasionally issues Practice Bulletins, and to date has issued seven of these, which are summarized later in this chapter.

Practice Standard 110—Valuation Reports

Practice Standard 110 pertains to valuation reports, which are defined as “any written communication containing a conclusion as to the value of shares, assets, or an interest in a business, prepared by a Valuator acting independently.”1 The Practice Standards indicate that there are three forms of valuation reports: a comprehensive valuation report, an estimate valuation report, and a calculation valuation report. These valuation reports differ, not only by the “scope of review and the amount of disclosure provided, but also by the level of assurance being provided in the conclusion, with the Comprehensive Valuation Report providing the highest assurance and the Calculation Valuation Report providing the lowest.”2

The comprehensive valuation report is to be “based on a comprehensive review and analysis of the business, its industry, and all other relevant factors, adequately corroborated and generally set out in a detailed valuation report.”3 The estimate valuation report “is ...

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