IVSC offers a ‘TIP’ on the DCF along with a discussion paper on valuing oil & gas interests

BVWireIssue #119-2
August 8, 2012

The International Valuation Standards Council has just released a new technical information paper (TIP) on the discounted cash flow. The TIP discusses the application of the DCF method in the valuation of business interests and real property interests and includes illustrative examples. To order, visit the IVSC website; the cost is £15 ($23.36) per copy (plus postage and handling).

Last week, the IVSC also published a discussion paper highlighting several issues that may have become “sources of inconsistency in valuations of mining, oil and gas assets,” says its release. The discussion paper seeks “the views of all industry participants on the issues raised, including operators in the sector, valuation consultants, investor groups and regulators. The responses will help the Board decide whether it needs to develop a new IVS dedicated to the extractive sector, issue technical guidance, or both.” Download the discussion paper here; responses are requested by mid-October.

Finally, the board also produced a discussion paper on trade-related properties, for which it has invited input, particularly from those involved in the valuation of properties and businesses in the leisure sector. The paper may be downloaded here, with comments welcome before October 31.

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