In May 2009, the IPEV Board called for comments on the exposure draft of the 2009 edition of the IPEV Guidelines. On 9 September 2009, the final revised Guidelines were released.

These Guidelines should be regarded as superseding previous Guidelines issued by the IPEV Board, with effect for reporting periods post 1 July 2009.

The IPEV Guidelines have been updated to take into account the evolution of fair value accounting requirements and practices around the globe, in particular as promulgated by the Financial Accounting Standards Board (FASB) in the United States and by the International Accounting Standards Board (IASB).

The principal changes relate to:

• Clarifying how the marketability discount should be applied
• Eliminating any reference to the one year period used in practice for retaining investments at 'Price of Recent Investment' concept, to ensure there are no conflicts with accounting rules
• Additional guidance on how to include additional milestone analysis into the 'Price of Recent Investment' concept
• Guidance on the valuation of interests in funds.

"To a large extent, the Updated Guidelines are consistent with the prior version," said Anthony Cecil, IPEV Board member and Partner at KPMG. "Changes were made to eliminate potential confusion and to ensure consistency with converging international accounting standards."

The IPEV Guidelines are drafted to be consistent with IFRS and US GAAP. As US GAAP and IFRS standards continue to evolve in the area of fair value, the Board plans to provide additional updates to the Guidelines.

Herman Daems, the IPEV Board Chairman, said "The Updated Guidelines provide practical best practice guidance on valuing private equity investments in a difficult market environment. Fair Value continues to provide the best basis for investors to monitor their portfolio and assist in making key asset allocation decisions."

David Larsen, IPEV Board Member, member of FASB's Valuation Resource Group and managing director at Duff & Phelps, said "the Updated Guidelines now provide expanded guidance on valuing early stage investments, provide clarity in valuing debt instruments, and provide guidance for valuing LP interests." In addition, "clarifications areincorporated to highlight the need to determine fair value at each reporting date and ensure that the illiquid nature of investments is appropriately considered," said Mr Larsen.