SAEE International Valuation Standards 4

Question 1

Which IVS asset standard addresses the valuation of businesses and business interests?

Accepted Answer

IVS 200

Answer

IVS 200 covers the valuation of businesses and business interests.

Question 2

When valuing intangible assets under IVS, which approach is frequently applied using relief-from-royalty?

Accepted Answer

Income approach

Answer

The relief-from-royalty method is an income approach technique common for intangibles like trademarks.

Question 3

What is a 'special purchaser' under IVS?

Accepted Answer

A buyer for whom the asset has special value above the market

Answer

A special purchaser perceives synergistic or special value exceeding the general market.

Question 4

Under IVS, the date on which the value estimate applies is called the:

Accepted Answer

Valuation date

Answer

The valuation date is the specific date to which the opinion of value applies.

Question 5

Which factor would a valuer most likely treat as a 'special assumption'?

Accepted Answer

Assuming planning permission is granted that does not yet exist

Answer

A special assumption assumes facts that differ from those existing at the valuation date.

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