Performing a valuation engagement with professional
competence involves special knowledge and skill. Statement
on Standards for Valuation Services No.1 states that a
valuation professional should consider, at a minimum, the
scope of the valuation engagement, including applicable
standard of value (for example, fair value or fair market
value), and the applicable premise of value (for example,
going concern) when completing a valuation engagement.
The primary purpose of this quick reference guide is to
provide an overview of the relevant premises and standards
of value used in valuations, and to assist the valuation
professional with understanding those differences.