Fair Value Measurement, 3rd Edition

Glossary of International Business Valuation Terms

TO ENHANCE AND SUSTAIN the quality of business valuations for the benefit of the profession and its clientele, the late‐identified societies and organizations have adopted the definitions for the terms included in this glossary.

The performance of business valuation services requires a high degree of skill and imposes on the valuation professional a duty to communicate the valuation process and conclusion in a manner that is clear and not misleading. This duty is advanced through the use of terms whose meanings are clearly established and consistently applied throughout the profession.

If, in the opinion of the business valuation professional, one or more of these terms needs to be used in a manner that materially departs from the enclosed definitions, it is recommended that the term be defined as used within that valuation engagement.

This glossary has been developed to provide guidance to business valuation practitioners by further memorializing the body of knowledge that constitutes the competent and careful determination of value and, more particularly, the communication of how that value was determined.

Departure from this glossary is not intended to provide a basis for civil liability and should not be presumed to create evidence that any duty has been breached.

• American Institute of Certified Public Accountants
• American Society of Appraisers
• Canadian Institute of Chartered Business Valuators
• National Association of ...