Fair Value Reporting

Fair Value reporting has been around globally since 1940. Private capital as an asset class is now in its third decade in India and attracts institutional investors from all geographies, most of whom require fair value reporting. As is evident in recent years, valuations are a critical and core issue for all stakeholders in the fund space as there is a need to demonstrate robust processes and procedures around the subjective task of ascribing fair value to privately held (i.e. unlisted) investments.

This page will provide several guidelines, tools and resources and perspectives that we believe could be leveraged by general partners, their board of directors, valuation professionals, auditors and other stake holders in performing their fiduciary duties. 

Investor scrutiny and requirements from auditors and regulators have become more pronounced. Watch this space for updates from time to time.

Following are the latest industry guidelines on valuation:

• Working draft of AICPA Accounting and Valuation guide for PE/VCs (released May 2018)
• Working draft of AICPA Accounting and Valuation guide for PE/VCs- Appendixes A-C, Glossary (released May 2018)
• International Private Equity and Venture Capital (IPEV) Guidelines (December 2018)

The below interactive tools help our clients access our technical and industry expertise: 

Cost of Capital Navigator
The Duff & Phelps Cost of Capital Navigator is a web-based resource for calculating cost of equity capital. 

Valuation Insights Industry Market Multiples 
View and download market multiples, and analyze trends over the last five years by industry, geography and multiple type.