Certified Valuation Analyst (CVA) Practice Exam

What is the valuation date defined as?

1. The date the valuation report is issued

2. The date when financial statements are prepared

3. The effective date of the valuation

4. The date when the valuation is requested

The correct answer is: The effective date of the valuation

The valuation date is defined as the effective date of the valuation, which serves as a critical point in time that reflects the value of the subject being assessed. This date is essential because it anchors the valuation to specific conditions present at that time, including economic circumstances, financial performance, and market conditions. This effective date ensures that the valuation report accurately represents the subject's worth based on the relevant data and circumstances as of that particular point in time. It provides a temporal context for the data used in the valuation, allowing stakeholders to understand the basis on which the value conclusion was reached. Understanding the significance of the effective date is crucial for valuators, as it impacts the interpretation of financial metrics and operational performance that may change over time.