3.2: Practice standards of the CICBV
As a condition of their membership of the Canadian Institute of Chartered Business Valuators (CICBV), CBVs undertake to comply with and adhere to the CICBV’s Practice Standards when preparing written reports. The standards are designed to set the minimum standards of care, and cover scope, disclosure, and file documentation requirements.
CICBV’s Practice Standards set the minimum standards of care expected of CBV’s.
The CICBV’s Practice Standards cover the following types of written reports:
- Valuation Reports, being Calculation valuation reports, estimate valuation reports and comprehensive valuation reports prepared by a CBV acting independently and providing a conclusion of value of shares, assets or an interest in a business;
- Advisory reports, with a valuation conclusion, where the CBV has not been engaged to act independently: the report should state clearly that the CBV is not acting independently;
- Expert reports are prepared in the context of litigation or a dispute by an expert acting independently. They contain a conclusion of any financial nature, particularly regarding the quantum of a financial gain/loss. Expert Reports may include a Valuation Report (see above);
- Limited critique reports where the CBV is commenting on a report issued by another CBV. The limited critique does not provide an alternative conclusion of value;
- Fairness opinions, in which the CBV provides a conclusion regarding the fairness of a proposed transaction from a financial point of view;
- Investment entity review reports, in which the CBV provides a conclusion regarding the reasonableness of the value of an investment entity (e.g. a pension fund) as determined by the manager of that entity.