International Valuation Standards Flashcards
7 cards from real SAEE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 International Valuation Standards flashcards as text
Under IVS, which standard deals with investigations and compliance during a valuation engagement?
Answer: IVS 102
IVS 102 covers investigations to be undertaken and compliance with the standards.
Which IVS standard sets out the valuation approaches and methods?
Answer: IVS 105 Valuation Approaches and Methods
IVS 105 describes the three principal approaches and their associated methods.
What does 'liquidation value' under IVS typically assume?
Answer: A forced or constrained sale, often within a limited time
Liquidation value assumes the seller is compelled to sell, often quickly.
Under IVS, when a discounted cash flow (DCF) model is used, the discount rate should reflect:
Answer: The risk associated with the projected cash flows
The discount rate must capture the time value of money and the risk of the cash flows.
Which of the following best describes the IVS principle of objectivity?
Answer: The valuer must not allow bias or conflicts to influence conclusions
Objectivity requires valuations free from bias, conflict of interest, or undue influence.
Under IVS, what is 'equitable value'?
Answer: The estimated price reflecting fairness between two specific identified parties
Equitable value assesses a fair price between two specific, identified parties considering their respective interests.
Which step is essential under IVS before relying on a valuation model's output?
Answer: Reviewing the inputs and assumptions for reasonableness
Valuers must check that model inputs and assumptions are appropriate and reasonable.