The Canadian Institute of Chartered Business Valuators (“CICBV”), the body that governs our work as Chartered Business Valuators (“CBV’s”) has recently implemented some rather significant changes to our practice standards (the “Practice Standards”) specifically related to the preparation of Valuation Reports. These changes are effective for engagements beginning after January 1, 2026 and so, while you may not necessarily see these changes immediately, changes are coming in the near future.
Perhaps the biggest change is with respect to the definitions of the different valuation reports that we prepare as CBVS and, more specifically, the level of work that will now be required in the preparation of Calculation Valuation Reports. According to the new Practice Standard 100 which now sets out the core concepts for Valuation Reports, the three levels of Valuation Reports are defined as follows[1]:
Comprehensive Valuation Conclusion – is based on an extensive Scope of Work. A Comprehensive Valuation Conclusion has a Scope of Work that addresses the significant inputs and assumptions in detail. As such, it includes a high level of independent corroboration by the Valuator of significant inputs and assumptions.
Estimate Valuation Conclusion – is based on a Scope of Work that is substantial, but less extensive than a Comprehensive Valuation Conclusion and more extensive than a Calculation Valuation Conclusion. As such, it includes a moderate level of independent corroboration by the Valuator of significant inputs and assumptions.
Calculation Valuation Conclusion – is based on a Scope of Work that is less extensive than an Estimate Valuation Conclusion and therefore might only be appropriate in certain circumstances. In a Calculation Valuation Conclusion, the Valuator limits the amount of independent corroboration and may make reasonable simplifying assumptions for certain inputs, and places a higher degree of reliance on client representations.
The previous Practice Standards referred to “minimal corroboration” which means that the level of work required to issue a Calculation Valuation Report has now been expanded. Within Calculation Valuation Reports, there will also be additional disclaimers that more clearly explain the level of work that has been done so that users can better understand the work product they are reviewing.
Along with the above, users of Valuation Reports should expect the following:
- More overall disclosure within the reports not only in terms of some of the additional disclaimers noted above but with more detail on the economic environment and commentary on the industry in which the business(es) operate.
- Given the additional requirements from a disclosure and corroboration perspective, this will translate into higher fees given the additional time required in preparing the valuation reports.
- More restrictions around the use and delivery of verbal valuation conclusions. The ability to deliver a verbal valuation conclusion is now specifically detailed within the Practice Standards (the prior standards were silent) but there are restrictions around providing such an opinion verbally.
- There will likely be an increase in the number of scope limitations in Valuation Reports where information is missing or there is an inability to corroborate certain key inputs and assumptions to the Valuation Report. If these scope limitations are significant enough it may prevent the CBV from being able to issue a report.
The changes have been a long time coming given that they went through three different exposure drafts with the first one issued in June of 2021. We believe that their implementation will lead to improved work product that will benefit all users of Valuation Reports including our clients, the legal profession and the Courts.
[1] Practice Standard 100 of the Canadian Institute of Chartered Business Valuators Handbook as at September 23, 2025
February 2026
