The International Private Equity and Venture Capital Valuation Board (IPEV Board) appreciates and welcomes the opportunity to provide feedback on the International Accounting Standards Board's Post Implementation Review of IFRS Statement 13, Fair Value Measurements.
As we have stated in our past input to accounting standards setters, there is a great importance for the provate equity investment community to be able to obtain and rely on consistently determined fair value estimates. Fair Value Measurements is a subject area where preparers, users ad auditors face challenges in understanding trure measures of value.
The IPEV Board supports the use of consistently determined fair value as the best measure of valuing private equity portfolio companies and investments in private equity funds. The concepts in the International Private Equity and Venture Capital Valuation Guidelines (IPEV Guidelines) are used by a large portion of the private equity and venture capital industry. In fact, many fund agreements in Europe require compliance with the IPEV Guidelines to ensure compliance with fair value principles.
The IPEV Guidelines, launched in March 2005 and last revised in December 2015, provide the private equity industry with the best practice in consistently estimating the fair value of investments compliant with IFRS and US GAAP accounting principles. The IPEV Guidelines are used by the private equity and venture capital industry for valuing private investments and provide a framework for fund managers and investors to more consistently determine estimates using a consistent framework that is compliant with both US GAAP and IFRS.