ICAI issues Valuation Standards as a benchmark for valuation practices applicable for its Members. - (25-05-2018)
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May 25, 2018
ICAI issues Valuation Standards as a benchmark for valuation practices applicable for its members
Recognising the need to have the consistent, uniform and transparent valuation policies and harmonise the diverse practices in use in India, the Council of the Institute of Chartered Accountants of India at its 375th meeting has issued the Valuation Standards which are 1st of its kind in India. With a vision to promote best practices in this niche area of practice, the Standards lay down a framework for the chartered accountants to ensure uniformity in approach and quality of valuation output. Among many other aspects, the standards include:
Framework for the Preparation of Valuation Report
Valuation Bases, approaches and methods
Scope of Work, Analyses and Evaluations
Documentation and Reporting
The Valuation Standards have been issued by the Institute of Chartered Accountants of India to set up concepts, principles and procedures which are generally accepted internationally having regard to legal framework and practices prevalent in India.
Applicability of Valuation Standards:
For Chartered Accountants providing Valuation Reports under various provisions of the Companies Act, 2013, compliance of these Valuation Standards is mandatory.
For valuation under other Statutes, it is recommendatory to comply with these valuation standards. Chartered accountants are requested to comply with the same as a good practice.
In formulating the Valuation Standards, ICAI considered best valuation practices followed globally as well as in India, uniqueness of Indian conditions, current practices in India along with their advantages and disadvantages and various purposes for which valuations might be required over and above the requirements of Companies Act. These standards come as ICAI’s consistent drive to guide its members for ensuring high quality work and standards.
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