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CMA Final · Strategic Performance Management and Business Valuation · Laws and Compliance in Business Valuation

For a valuation report prepared by a registered valuer for a company under the Companies Act, which feature is required in the report to support its compliance and reliability?

A compliant valuation report states the valuation approach, key assumptions and limiting conditions. This transparency lets users judge reliability. A valuer does not guarantee future realisation, give investment advice to retail investors, or hide the methodology from the company.

  1. AOnly the final value, with the methodology kept confidential from the company
  2. BA statement of the valuation approach, key assumptions and limiting conditions usedCorrect
  3. CA guarantee that the value will be realised in any future sale
  4. DThe valuer's opinion on the company's investment merit for retail investors

Explanation

Valuation reports must disclose the methods, assumptions, bases and limitations so users can rely on them. A valuer does not guarantee realisation of the value, nor give investment advice. Keeping the methodology confidential defeats transparency.

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