SVS No. 11 Business Valuation


Issued by Valuation Standards Committee in Taiwan on 3 December, 2015.


This Statement establishes the basic principle and application guidance for business valuation. Business valuation may comprise the whole business, part of activities in an entity or part or whole of business interests.
When undertaking business valuation, valuers should identify the purpose of valuation, decide the applicable standard of value, and select the appropriate premise of value (e.g. going concern in most cases). The valuers should obtain sufficient and appropriate financial and non-financial information, assure that all data sources relied upon are reliable and appropriate, and state the data sources in the valuation report. The valuers should also make adjustment to the information contained in financial statements for events that have impacts on the valuation process.
The main approaches used in business valuation are income approach, market approach and assets approach. Valuers should apply two or more valuation approaches to arrive at the value conclusion(s). Valuers should also examine the reasonability of the inputs and value conclusion(s). Before reaching a conclusion, the valuers should consider the effects of the degree of control and marketability.
This Statement requires valuation report on business valuation to be prepared in accordance with SVS No. 03 Valuation Report. The valuation report should include disclosures about business information, financial analysis and adjustment process, and valuation approaches applied.

Effective date

This Statement is effective from 25 December, 2015.

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