New Valuation Standards Launched

AICPA in US along with the American Society of Appraisers (ASA) and RICS (Royal Institution of Chartered Surveyors) has launched a new valuation standard know as Certified in Entity and Intangible ValuationsTM (CEIV).  In addition to business valuation and corporate finance courses being taught at B-schools, there are already good international courses like CFA, ASA, ABV which exist today. However most of these courses are focused on teaching fundamental corporate finance concepts and business valuation methodologies. Though the details of course are still awaited, the new CEIV course/credential is a welcome step particularly in relation to  the  valuation of Intangible assets. Intangible assets valuation requires use of complex methodologies and also involves lot of subjective inputs like –  attrition rates, obsolescence curve, royalty rates etc. This course would go a long way if it helps valuaiton professionals not only in learning these complex approaches  but also if it provides an objective and consistent framework in using the aforementioned valuation inputs.

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