Valuation Reporting

The form and content of any final written valuation report depends on the nature of the engagement and the arrangements made with the client. There is no standard form of valuation report. Judgement must be exercised in determining the extent to which actual data, assumptions, choice of methodology and explanations of the reasoning behind the opinion are included in the report, while being mindful of the legal considerations and the business environment.
The normal minimum contents of the report should be the following:
  • reference to the engagement letter, proposal, contract or other document, as appropriate in the circumstances and which sets forth the valuer’s appointment or the agreed arrangements with the client;
  • a statement of the purpose and basis of the valuation, a description of the intangible assets including any significant rights or restrictions and the date of the valuation;
  • to the extent that relevant source information is included in or referred to in the report, a clear explanation of the nature of the verification work performed, or not performed, on such information;
  • an expression of opinion that is responsive to the purpose and basis of the valuation; and
  • a statement restricting the use of the report to the purpose stated.
The extent to which additional information is included in a report will ordinarily depend on the purpose and basis of the report and the needs and expectations of the intended users. It may be appropriate to include the following:
  • a description of the methodology used to make the valuation, a summary of the factors used to give effect to the methodology and a description of how the factors were applied;
  • a summary of the numerical computations of the valuation; and
  • any other significant information applicable in the circumstances.