SAEE SAEE - International Valuation Standards Questions and Answers 3

Question 1

Under IVS, which body is responsible for issuing and maintaining the International Valuation Standards?

Accepted Answer

The International Valuation Standards Council (IVSC)

Answer

The IVSC is the independent global standard-setter responsible for issuing and maintaining IVS.

Question 2

IVS defines 'fair value' as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. This definition aligns most closely with which accounting standard?

Accepted Answer

IFRS 13

Answer

IFRS 13 'Fair Value Measurement' shares the same exit-price definition of fair value as used in IVS.

Question 3

Under IVS 105, which of the following is NOT listed as a principal valuation approach?

Accepted Answer

Residual Approach

Answer

IVS 105 identifies three principal approaches: Market, Income, and Cost; the Residual Approach is a method within the Income or Cost approach, not a standalone principal approach.

Question 4

According to IVS, 'synergistic value' refers to value that arises from the combination of two or more assets or interests where the combined value exceeds the sum of the individual values. This is also known as:

Accepted Answer

Marriage value

Answer

IVS uses the term 'marriage value' interchangeably with synergistic value to describe incremental value created by combining interests.

Question 5

IVS requires that a valuation report must be clear enough to allow a reader to understand the scope of work. Which IVS standard specifically addresses reporting requirements?

Accepted Answer

IVS 103

Answer

IVS 103 'Reporting' establishes the minimum content requirements for valuation reports.

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SAEE SAEE - International Valuation Standards Questions and Answers 3