Valuation is carried out in the Capital market by Stockbrokers, in respect of business enterprises by Accountants, on on-going capital projects by Cost Consultants (or Quantity Surveyors), for tangible assets by real estate valuers and engineers.
There are branches in law - constitutional law, business law, insurance law, criminal law etc - with each requiring peculiar knowledge insights yet the practice of all these have similar underlying legal principles. Perhaps, a similar reasoning could go for valuation/appraisal/assessment of different assets across different market sectors.
i think it is more business (as bundles of assets), than assets per se.
industry would be one. bankers generally specialize in industry.
another would/ could be business type or age - private or public, age of the company.
another could be specific market - developing, developed, specific region (asia, etc)
Thanks Mr Barnard, but that's viewing valuation from business/finance perspective only. What's to be valued/assessed could also be in componetised form for both business firms, non-business entities and individuals. Here, focus is specific asset in terms of what a non-branded item not in its new state could exchange for vis-a-vis its age, condition etc. Valuation purposes could also transcend sale, mortgage or financial reporting to insurance coverage, litigation etc.
In essence, what is being valued and for what purpose often vary widely but the undertone principle is similar.
what would the purpose be? valuation to what end? it seems to pertain more to proper accounting. assets on their own are generally not worth more than their recovery value
Product specific valuations vary - say between bonds and private equity. Variety of contextual methodologies exist. However, Valuation is a tool to reach diverse end goals - impairment and provisioning, project performance, portfolio strategy- you name it. All serve th overall financial strategy.
Difficult to be a standalone academic disciple as the methods have diverse application.
Presently, valuation exists outside the accounting circle as a profession, dealing substantially with tangible assets - real estate, machinery etc for a wide spectrum of purposes, including input to financial reports, and for taxation, mortgage, sale/purchase, insurance etc. Accountants often have cause to engage real estate valuers, machinery valuers etc where current replacement value in a market setting must be sought (taking cognisance of actual condition assessment).
My concern is why different professional groups would continue to practice aspects of valuation rather than developing a disciplinary orientation to handle it as an all-embracing practice
IFRS 13 applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement.
valuation is very much within the accounting domain
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