International Valuation Standards explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The CIRP Regulations used to require estimates computed in accordance with internationally accepted valuation standards — which left a valuer free to pick any recognised methodology, or a standard issued by their own RVO.
That latitude was a significant source of divergence. Two valuers, each correctly following a different legitimate standard, could honestly reach materially different answers, and neither could be faulted.
It ended on 1 April 2026.
Since 1 April 2026, IBC valuations must follow only the International Valuation Standards issued by the IVSC. IBBI has issued a standardised reporting format for each asset class, and every report must carry a VRIN generated on the IBBI portal, printed in the left-hand footer of every page. ESG factors are now part of the exercise.
The standardised reporting format
IBBI has prescribed a common set of minimum disclosures for each asset class:
| Element | What it means in practice |
|---|---|
| Purpose and scope | The engagement's purpose, the appointing authority, and the intended users |
| Registration details | Of the valuer and any other experts involved, with conflict-of-interest disclosures |
| Background | Of the assets or business valued, and the currency and unit of measurement |
| Sources of information | Plus the basis and premise of value, and the methodology and approach adopted |
| Discounts and premia | Applied, with supporting reasoning, and the key assumptions relied on |
| Sustainability and ESG | Factors considered, plus caveats, limitations and disclaimers |
| Key findings | A reasoned conclusion on fair value and liquidation value |
| VRIN | On every page — see below |
Standardisation does not constrain professional judgment on methodology or conclusions. It ensures the same categories of information appear in the same order across reports, so CoC members — who are bankers and creditors, not valuation professionals — can compare two reports meaningfully. That was previously close to impossible when two reports arrived in entirely different styles and structures. Judicial scrutiny →
The VRIN
Every report must carry a Valuation Report Identification Number, generated through the IBBI portal and printed in the left-hand footer of every page.
Two things to keep straight:
- It is distinct from the UDIN that chartered accountants append below their signature.
- It is dated to the date the report is actually issued, not the valuation date.
And it is different again from the VRN, the valuer's own registration number. The VRN identifies the person; the VRIN identifies the report. VRN and valuer liability →
Why standardisation attacks the divergence problem
Two valuers on the same asset routinely differ. Much of that difference is not analytical — it is structural: different formats, different implicit assumptions, different valuation dates, different scope.
Standardised reporting reduces the variation that comes from format rather than judgment. When both reports state the basis, the date, the scope and the assumptions in the same structure, a remaining difference can be traced to a cause — one assumed a two-year completion timeline, the other four.
That is far more useful to a CoC than a third valuation, which resolves by discarding an outlier rather than by explaining anything. The 25% divergence rule →
And it makes the apples-to-apples brief enforceable. An RP issuing a common scope to both valuers in a class can now point to a standard rather than a preference. Regulation 35 →
The wider architecture it belongs to
IVS alignment is one component of a broader shift in how valuation is governed under the Code:
- Digital certification tied to the VRN registry, with a VRIN identifying each report. VRN, VRIN and digital certification →
- Presentations to the CoC by prospective valuers before appointment, followed by a mandatory pre-valuation methodology meeting once appointed.
- Mandatory sensitivity analysis, moving reports away from single-point answers.
- The Coordinator Valuer consolidating asset-class valuations into one enterprise-level view, one in each of the two sets. The coordinator valuer →
- Competency expectations widening, particularly for intangible assets — brand analysis, IP valuation, customer lifetime value, franchise assessment. Intangibles under IBC →
The cumulative direction is toward an accountability framework for registered valuers that resembles the one applying to statutory auditors — with comparable professional and legal exposure attached to a lapse.
ESG is now part of the exercise
The framework requires valuers to factor in Environmental, Social and Governance considerations, in line with the 2025 update to the International Valuation Standards.
The reasoning is commercial rather than ideological: a business in a carbon-intensive or otherwise ESG-sensitive sector may command a different value in the eyes of global investors than an otherwise comparable business that is not. Where that is true of the corporate debtor, it belongs in the analysis and in the report.
Key takeaways
- IVS only, since 1 April 2026. The old latitude to pick any recognised standard is gone.
- Standard-shopping was a real source of honest divergence — that is what this closes.
- A prescribed reporting format per asset class, with a common minimum disclosure set.
- Conflict-of-interest disclosure is part of the format, not a separate courtesy.
- VRIN on every page, from the IBBI portal, dated to issue — distinct from UDIN and from the VRN.
- ESG factors are required, per the 2025 IVS update.
- Format does not constrain judgment — it makes reports comparable.
Read next
- Regulation 35: Determining Fair Value and Liquidation Value
- Assumptions and Sensitivity Analysis in a Valuation Report
- The Coordinator Valuer and Aggregated Fair Value
- VRN: Validity, Digital Certification and Valuer Liability
Disclaimer: Positions stated as on 5 September 2026, reflecting the February 2026 amendments and the mandatory application of IVS from 1 April 2026. Verify the current requirement on ibbi.gov.in before relying on it.