Indian Valuation Standards 2018 issued by ICAI effective for the valuation reports issued on or after 1st July 2018.
Indian Valuation Standards 2018 by ICAI
The Council of the Institute of Chartered Accountants of India (ICAI) at its 375th meeting has issued the Valuation Standards which as claimed are 1st of its kind in India.
As per the ICAI announcement, the Valuation Standards have been issued to promote best practices in this niche area of practice, they lay down a framework for the chartered accountants (CAs) to ensure uniformity in approach and quality of valuation output.
The list of Valuation Standards issued by ICAI is as under:
1. Preface to the Indian Valuation Standards
2. Framework for the Preparation of Valuation Report in accordance with the Indian Valuation Standards
3. Indian Valuation Standard 101 – Definitions
4. Indian Valuation Standard 102 – Valuation Bases
5. Indian Valuation Standard 103 – Valuation Approaches and Methods
6. Indian Valuation Standard 201 – Scope of Work, Analyses and Evaluation
7. Indian Valuation Standard 202 – Reporting and Documentation
8. Indian Valuation Standard 301 – Business Valuation
9. Indian Valuation Standard 302 – Intangible Assets
10. Indian Valuation Standard 303 – Financial Instruments
These Standards have been issued 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:
The above Indian Valuation Standards will be applicable for all valuation engagements on mandatory basis under the Companies Act 2013. In respect of Valuation engagements under other Statutes like Income Tax, SEBI, FEMA etc, it will be on recommendatory basis for the members of the Institute. These Valuation Standards are effective for the valuation reports issued on or after 1st July, 2018.
It has been clarified that the said Indian Valuation Standards will be effective till Valuation Standards are notified by the central Government under Rule 18 of the Companies (Registered Valuers and Valuation) Rules, 2018.
Download Indian Valuation Standards 2018 by ICAI Click Here >>