SAEE International Valuation Standards 5

Question 1

Under IVS, which standard deals with investigations and compliance during a valuation engagement?

Accepted Answer

IVS 102

Answer

IVS 101

Answer

IVS 103

Answer

IVS 105

Question 2

Which IVS standard sets out the valuation approaches and methods?

Accepted Answer

IVS 105 Valuation Approaches and Methods

Answer

IVS 104 Bases of Value

Answer

IVS 101 Scope of Work

Answer

IVS 100 Framework

Question 3

What does 'liquidation value' under IVS typically assume?

Accepted Answer

A forced or constrained sale, often within a limited time

Answer

An unlimited marketing period

Answer

The most favorable market conditions

Answer

Replacement at full cost

Question 4

Under IVS, when a discounted cash flow (DCF) model is used, the discount rate should reflect:

Accepted Answer

The risk associated with the projected cash flows

Answer

Only the risk-free government rate

Answer

The valuer's preferred return

Answer

The historical cost of the asset

Question 5

Which of the following best describes the IVS principle of objectivity?

Accepted Answer

The valuer must not allow bias or conflicts to influence conclusions

Answer

The valuer must always favor the client

Answer

The valuer must use only one approach

Answer

The valuer must avoid documentation

Question 6

Under IVS, what is 'equitable value'?

Accepted Answer

The estimated price reflecting fairness between two specific identified parties

Answer

The general market value to all buyers

Answer

The forced sale value

Answer

The insured value of the asset

Question 7

Which step is essential under IVS before relying on a valuation model's output?

Accepted Answer

Reviewing the inputs and assumptions for reasonableness

Answer

Publishing it immediately

Answer

Ignoring sensitivity analysis

Answer

Removing all assumptions