SVS No. 09 Terms of Engagements in Valuation and Valuation Review


Issued by Valuation Standards Committee in Taiwan on 20 December, 2013.


This Statement establishes fundamental principles and application guidance for engagement letters in valuation and valuation review. The objective and scope of the valuation and valuation review, the extent of the rights and obligations between the valuer and the related parties are documented and confirmed through the engagement letters. Valuers should follow this statement as preparing engagement letters in valuation and valuation review. Engagements whose scope are beyond this statement but might address the application of valuation could also refer to this statement. The forms and contents of engagement letters in valuation would include clauses that must or might be recorded. For example, providing the working paper to the third party is permitted or not. Except for some specified requirements for engagement letters in valuation review, the engagement letters in valuation review should be prepared in accordance with the requirements for the engagement letters in valuation.
If significant events occurred during the process of valuation, valuers should reassess and communicate with the related parties to decide whether the engagement letter should be amended or re-signed. Finally, the responsibilities of the related parties and how to deal with the argument should be recorded in the engagement letter.

Effective date

This Statement is effective from 25 December, 2013.

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