SAEE International Valuation Standards 2

Question 1

Which organization issues the International Valuation Standards (IVS)?

Accepted Answer

International Valuation Standards Council (IVSC)

Answer

The IVSC is the global body responsible for developing and maintaining the International Valuation Standards.

Question 2

Under IVS, what is the primary purpose of identifying the 'basis of value' in an assignment?

Accepted Answer

To define the type of value being estimated and its assumptions

Answer

The basis of value specifies the fundamental measurement premise, such as market value or fair value.

Question 3

Which of the following is the IVS definition focus of 'Market Value'?

Accepted Answer

Estimated amount in an arm's-length transaction between willing parties

Answer

Market value assumes a willing buyer and seller acting knowledgeably and without compulsion.

Question 4

What does the IVS framework require a valuer to do regarding assumptions and special assumptions?

Accepted Answer

Clearly state and disclose them in the report

Answer

IVS requires assumptions and special assumptions to be explicitly stated and agreed upon.

Question 5

Which valuation approach estimates value based on comparable transactions in the market?

Accepted Answer

Market approach

Answer

The market approach derives value by comparing the subject asset to similar assets that have transacted.

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