The Institute aims to endorse transparency, objectivity, independence in its working
The Institute of Chartered Accountants of India (ICAI) has invited comments for the draft on Indian Valuation Standards released by Valuation Standards Board (VSB) of ICAI. The Institute through VSB has formulated valuation standards meant for financial transactions such as merger & acquisition, buying/selling of properties, solvency and many such activities.
Valuation of business, financial instruments and other assets is gaining importance now and is considered as one of the most critical areas in finance, in particular after the implementation of Ind-AS. It plays a key role in financial reporting and in other areas of finance such as buy/sell, solvency, merger and acquisition. It also has a crucial role in the Insolvency Resolution (IR) regime where liquidation value has to be ascertained by Resolution professional through the registered valuers.
Keeping this in mind, ICAI constituted Valuation Standards Board in 2018 with an objective to formulate Indian Valuation Standards, providing interpretations, guidance and technical materials from time-to-time and implementation of the standards.
The draft among many other aspects includes:
CA. Naveen N. D. Gupta, President ICAI said, “The Valuation Standards sets out concepts, principles, practices and procedures which are generally accepted internationally with regard to prevailing legal framework, procedures and practices in India. Also, the Standards will provide a benchmark to the professionals to ensure uniformity in approach and quality of valuation output.”
To ensure transparency, objectivity, independence and greater public participation in its working, Standard Setting Committee of ICAI exposed the draft standards for comments from all stakeholders. Comments can be submitted using one of the following methods, so as to be received not later than May 12, 2018
Electronically: At the link given in the Exposure Draft of each of the Standards. Available on ICAI Website, www.icai.org. (Preferred method)
Email: Comments can be sent to email@example.com
Postal: Secretary, Valuation Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, A-29, Sector-62, Noida – 203209.
ICAI is a statutory body established under the Chartered Accountants Act, 1949 for regulating the profession of Chartered Accountants in India. ICAI is the second largest accounting body in the world. The strength of Chartered Accountant fraternity has grown to over 2.80 lakh members and about 8 lakh active students. The Institute functions under the Ministry of Corporate Affairs, Government of India. It has its headquarters in New Delhi and 5 Regional offices. It presently has 163 branches spread all over the country. In addition, it has also set up 31 chapters outside India and an overseas office in Dubai.