Friday, 4 July 2008 
 
 
The Institute of Chartered Accountants in Australia (the Institute) is delighted that the Accounting Professional and Ethical Standards Board (APESB) has acknowledged the calls for greater guidance on conducting and reporting business valuation services, through a new APES 225 Valuation Services standard.  
 
The Institute provided comment to the standard through its Business Valuation Special Interest Group, chaired by John Gibson, a partner from Big 4 accounting firm, Ernst & Young.  
 
The new standard applies to members of the professional accounting bodies in Australia who perform an engagement or assignment that estimates the value of a business, business interest, security or intangible asset for numerous purposes, including sales transactions, financing, taxation, financial reporting, mergers and acquisitions, management and financial planning and litigation.  
 
“The use of valuation principles and techniques has increased substantially since the introduction of International Financial Reporting Standards in 2005,” said Ms Kerry Hicks, Institute of Chartered Accountants in Australia, Head of Reporting. 
 
APES 225 specifies the mandatory requirements for both accountants in practice and business including, independence, professional engagement and minimum reporting requirements.  
 
“The Institute’s Business Valuation Special Interest Group has played an integral role in the development of the standard for the benefit of accountants who are members of the three professional accountant bodies of Australia.”  
 
“The APES 225 standard will ensure that the professional accountants skill set is consistent across the different areas of valuation – whether for accounting, taxation or business acquisition purposes,” said Ms Hicks.  
 
The new standard is effective from 1 January 2009, however, members of the Institute have been encouraged to adopt the standard earlier.