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Valuation conclusions are increasingly relied upon by management, auditors, boards, investors and regulators. When a valuation is used for financial reporting, impairment testing, purchase price allocation, share-based payment, financial instruments or transaction support, intended users need confidence that the valuation process, methodology, data, model and conclusion are properly supported.
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STEAM Valuation Advisory provides independent valuation review and appraisal review services with reference to the International Valuation Standards (“IVS”) issued by the International Valuation Standards Council (“IVSC”), relevant accounting standards and the stated purpose of the valuation under review. IVS includes General Standards covering scope of work, bases of value, valuation approaches, data and inputs, valuation models, documentation and reporting.
Discover how ASA explain the concepts and nuances of appraisal and valuation so that the client could pursue an accurate valuation.
Independent Valuation Review for Critical Financial Reporting and Governance Decisions
What Is a Valuation Review?
A valuation review is an independent assessment of valuation work prepared by management, an external valuer, an internal valuation team or another professional adviser. The purpose is to evaluate whether the work under review is sufficiently clear, supportable and appropriate for its intended use.
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A valuation review may include:
Valuation Process Review
A review of whether the valuation process, scope of work, basis of value, methodology, data, inputs, model application, documentation and reporting are appropriate.
Value Review
A review of whether the valuation conclusion appears reasonable based on the procedures performed, information reviewed and limitations stated.
Combined Review
A combined review covering both the valuation process and the reasonableness of the value conclusion. Our review focuses on the work under review, not the preparer. Findings are communicated in a neutral, objective and evidence-based manner.
When a Valuation Review Is Needed
A valuation review may be useful when a valuation has a significant impact on financial statements, transaction decisions, audit evidence or governance matters.
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We support valuation reviews in areas including:
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Goodwill and asset impairment testing under IAS 36 or other financial reporting frameworks
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Business valuation and cash-generating unit valuation
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Purchase price allocation
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Fair value measurement under IFRS 13 or other accounting standards
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Share-based payment and option valuation
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Convertible bonds, warrants and other financial instruments
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Intangible asset valuation
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Expected credit loss estimation
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Review of valuation models and key assumptions
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Review of valuation work prepared by management or third-party valuation experts
Our IVS-Aligned Review Framework
Our valuation review approach is designed with reference to the IVS framework, including the relevant General Standards and, where applicable, Asset Standards.​
Scope of Work
We consider whether the work under review clearly identifies the subject valuation, client, intended users, intended use, valuation date, basis of value, information relied upon, assumptions, limitations and the nature of the procedures performed.
Basis of Value
We assess whether the basis of value is clearly stated and applied consistently. Depending on the engagement, the relevant basis may include value in use, fair value, market value or another specified basis under the applicable financial reporting or valuation framework.
Valuation Methodology
We consider whether the selected valuation approach and method are suitable for the purpose of the valuation and the subject asset, liability, business interest or financial instrument.
Data and Inputs
We review whether significant data and inputs are identified, sourced, documented and applied consistently. IVS includes a General Standard specifically addressing data and inputs.
Valuation Models
We assess the transparency, structure and mechanical application of valuation models, including formula consistency, calculation flow, treatment of key assumptions and sensitivity analysis where relevant. IVS includes a General Standard specifically addressing valuation models.​
Documentation and Reporting
We consider whether the valuation report or memorandum provides sufficient information for intended users to understand the work performed, key judgments, assumptions, limitations and conclusions. IVS includes documentation and reporting as part of its General Standards.
Why STEAM Valuation
Independent and Objective: Our review focuses on the valuation work, not the valuer. We communicate findings in a neutral and evidence-based manner.
Financial Reporting Experience: We understand the practical interaction between valuation, audit and financial reporting requirements.
IVS-Aligned Review Approach: Our approach is designed around scope, basis of value, methodology, data, inputs, model mechanics, documentation and reporting.
Business Valuation Expertise: We support reviews involving business interests, intangible assets, impairment testing, financial instruments and complex capital structures.
Clear Communication: We help clients, auditors and intended users understand valuation issues in plain language, while preserving technical precision.
Our valuation review services for accounting firms aim to enhance the quality, reliability, and compliance of valuations performed by other parties. By engaging our expertise, accounting firms can confidently rely on our independent assessments and recommendations, ensuring the integrity and accuracy of the valuations used for financial reporting, transactional purposes, or other business requirements.
Contact us today to learn more about how our valuation review services can add value to your accounting firm. Our dedicated team of professionals is committed to providing thorough and insightful reviews that instill confidence in the valuations relied upon by accounting professionals and their clients.
Types of Valuation Review We Provide
Valuation Process Review
A valuation process review focuses on whether the valuation was prepared through a reasonable and properly documented process.
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Typical review areas include:
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Scope of work
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Intended use and intended users
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Basis of value
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Valuation date
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Asset, liability or business interest being valued
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Methodology selection
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Data and inputs
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Model design and mechanics
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Consistency with accounting or valuation standards
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Documentation and reporting
Value Review
A value review focuses on whether the valuation conclusion appears reasonable based on the available information and agreed scope.
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Typical review areas include:
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Key value drivers
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Selected valuation methodology
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Significant assumptions
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Discount rate or market multiple support
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Terminal value assumptions
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Control, liquidity or marketability adjustments
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Sensitivity analysis
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Reconciliation of valuation outputs to reporting or decision-making requirements
Issue-Based Review Reporting
Where appropriate, our review reports can be structured by issue, using a clear framework such as:
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Conclusion
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Rule or standard
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Analysis
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Conclusion
This approach helps intended users understand the issue identified, the relevant valuation or reporting requirement, the analysis performed and the resulting conclusion.