Types of business valuations in Australia

According to Accounting Professional & Ethical Standard 225 Valuation Services (APES 225), qualified Australian accountants (members of professional bodies such as CPA Australia or Chartered Accountants Australia & New Zealand) can provide the following three types of business valuation services: Valuation Engagement, Limited Scope Valuation Engagement and Calculation Engagement.

Valuation Engagement

Valuation Engagement is a comprehensive business valuation where the business value is determined by applying approaches, methods and procedures “a reasonable and informed third party would perform taking into consideration all the specific facts and circumstances available at that time”. This type of business valuation is often required by law for taxation purposes, family law, shareholder and other disputes.

Limited Scope Valuation Engagement

Limited Scope Valuation Engagement (also referred to as “restricted-scope valuation engagement” or “indicative valuation engagement”) is a valuation where the scope of work is limited or restricted. Valuation scope limitations/restrictions are often due to limited budgets clients allocate to the valuation service or insufficient information available to the valuer. In such cases, the valuer is not free to employ the approaches, methods and procedures “a reasonable and informed third party would perform taking into consideration all the specific facts and circumstances available at that time”.

Valuation scope limitations should be discussed and agreed upon before the valuation engagement starts; however, they can also be discovered during the course of the service.

Calculation Engagement

Calculation Engagement is a valuation where the valuer and the client agree on the approaches, methods or procedures the valuer will employ in the valuation. This may involve predetermined discount rates, valuation multiples, number of valuation methods, etc.

The valuation types overviewed above require different levels of time and expertise from the valuer. Therefore, the valuation service price can vary significantly.

last updated February 2026
by Julia Podgorbunskaya, CPA, Senior Business Valuer at Professional Business Valuers

(61) 02 8072 8929
Julia@ProfessionalBusinessValuers.com.au
www.ProfessionalBusinessValuers.com.au