Main Considerations and Types of International Valuation Standards Used in the Assesment of an Organization

Establishing the value of an organization is a complex task, resulting from an assessment process in accordance with International Valuation Standards (IVS). According to the standards in place, value is not an intrinsic feature of an asset or good, but it is created in the minds of people that constitute the market of that asset or good. The basis of the valuation methodology, the "present value" of assets and "return value", jointly determine "the value of the organization". Starting from this concept, the new assessment standards for the company's valuation classify methods into three categories, in Romania, as follows: valuation methods based on asset, based on revenue and through direct comparison (the market value). The conclusion is that the value of an organization is changing in time, meaning that the value determined by IVS standards is strictly valid on for the intended purpose.