The International Valuation Standards Council (IVSC) has published an exposure draft of guidance and illustrative examples to assist practitioners in understanding and correctly applying the principles in the International Valuation Standards, primarily those in the IVS Framework, in different situations. The three principal bases of value contained within the IVS Framework are:

• Market value: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently, and without compulsion;

• Investment value: The value of the asset to the owner or a prospective owner for individual investment or operational objectives; and

• Fair value: The estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties that reflects the respective interests of those parties.

The IVS Framework also defines “special value” and “synergistic value,” which are a component of one or more of the above three bases of value. Special value is an amount that reflects particular attributes of an asset that are only of value to a special purchaser. Synergistic value is an additional element of value created by the combination of two or more assets or interests where the combined value is more than the sum of the separate values.

Comments on the exposure draft are invited and should be submitted no later than March 31.