Standard No. 110 of the CBV Institute

Standard No. 110 of the CBV Institute

Do you know how to get an initial idea of the quality of a business valuation report submitted to you?

Chartered Business Valuator (CBV) have professional standards that they must comply with. These Practice Standards, established by the CBV Institute, have been put in place to ensure that reports published by CBV contain a number of important information presented in a consistent manner.

Standard No. 110, in particular, deals with valuation reports: when you know about it, it can help you to get an initial idea of the quality of the valuation report in your hands. However, the assistance of a CBV remains essential to accurately assess a valuation report, since he will have consulted and written several of them throughout his career.

Standard No. 110

In one of my previous article that reviewed the standards and code of ethics established by the CBV Institute, I proposed the following definition of the Standard No. 110:

“The most well-known [Standard is] without doubt the Standard 110 which sets out the standards and recommendations on information to be provided in the valuation report. Appendix A of the Standard 110 provides guidance on the standards for valuation reports prepared for the purposes of securities legislation, regulation or policies. Appendix B of the Standard 110 informs on the valuation standards of financial reporting purposes.”

Therefore, since it sets out the minimum requirements for the information that a professional valuation report should contain and instructions on how to present it, a good business valuator will comply with Standard 110. Failure to comply with this Standard will increase the likelihood that the report produced will be of lower quality and may even call into question the expertise of the evaluator who submitted the report.

Types of Valuation Reports

Standard No. 110 applies to three different types of valuation reports, which differ in the scope of review done by the evaluator, the amount of information included in the report and the level of assurance of the conclusion.

Comprehensive Valuation Report

This type of report provides the highest level of assurance of the conclusion, as it is the most detailed of the three and is based on the most information. It will include an in-depth analysis of the business, the sector in which it is located and several other key factors such as the business’s financial data.

Estimated Valuation Report

This type of valuation report is based on a more limited and less detailed analysis than the comprehensive valuation report but is still based on several data duly collected by the CBV.

Calculation Valuation Report

This is the type of report that has the lowest level of assurance of the conclusion since it is based on a more minimal analysis.

The choice of valuation report will, therefore, depend on the client’s needs and objectives and the agreement made with the CBV.

The minimum requirements for any valuation report according to Standard No. 110

To help you identify what you should find in a professional valuation report, regardless of what type it is, here are some basic guidelines set out in the Standard 110. If you would like to know the complete list of requirements for a professional valuation report, you can consult the Standard 110 in detail on the CBV Institute’s website.

Report Introduction

In a valuation report that complies with the Standard 110, there will be an introduction with the essential basic details about the report in question: for example, the name of the recipients of the report, the effective date of valuation, the date on which the valuation report was written, what was appraised and the purpose for which the report was prepared.

Report Definitions

There should be, in all three types of reports, the definition of the terms of value used by the CBV in its assessment. In its definition of the fair market value, the CBV should also indicate whether special purchasers were considered in its analysis.

Report Scope of Review

The elements to be included in the scope of the review will differ depending on the type of valuation report chosen. However, in all cases, a professional valuation report should contain a description of the scope of the review conducted by the CBV and a presentation of the information used in the analysis.

Report Disclosure

The number of information to be provided in the report will also depend on the type of valuation report. However, the information presented should always contain, at a minimum, a conclusion as to the value suggested by the CBV, the approach and methods used and the key assumptions made in arriving at the valuation conclusion.

Report Restrictions and Qualifications

A valuation report that complies with Standard 110 will propose a statement of the restrictions that affect the conclusion reached. For example, the CBV will include, in the restrictions and qualifications, a statement restricting the use of its report.


In this section, it will be clear whether the CBV has followed the guidelines of the Standard 110 throughout the valuation report: if so, the person reading the report should be able to clearly understand the conclusions drawn by the CBV and the path that led to those conclusions.

These requirements are only an overview of what a professional valuation report should contain and are not a substitute for the analysis of a CBV. If you want help in your assessment of a report, you can contact me, and I will be happy to offer you my services!