IPEV Guidelines: Final Version of International Private Equity and Venture Capital Valuation Guidelines has been released.
In December 2018, the International Private Equity and Venture Capital Valuation Guidelines Board (the “IPEV Board”) has released the final version of the International Private Equity and Venture Capital Valuation Guidelines. The Valuation Guidelines were last updated in 2015 and the recent update reflects the continued experience of industry practitioners applying IFRS 13 and ASC Topic 820 (US GAAP) as well as incorporating other valuation guidance such as that reflected in the working draft of the AICPA's Guide to the Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies. Key Enhancements include further guidance on the use of the price of a recent investment as a valuation technique to reinforce the premise that fair value must be estimated at each Measurement Date and on the valuation of investments in early-stage enterprises and in debt securities. The IPEV Guidelines are effective as of January 1, 2019, with earlier adoption encouraged.