The Current IDW S1: New, Familiar, and More Clear

On April 8, 2026, the IDW published the new IDW S1. Valuation professionals will be particularly interested in what will or must change in their own work. We will therefore refrain from historical and theoretical discussions and instead provide a concise overview of what is changing and what is not. The references in parentheses refer to the current version of IDW S1.

Although the revised version of IDW S1 is comparable in scope to the previous version, its style, terminology, and wording are more practice-oriented, clearer, and more rigorous. In terms of content, IDW remains true to its approach, and the objective value remains its core principle. However, there have been some changes in the surrounding context. These include, on the one hand, genuinely new requirements, and on the other, merely a clarification of established practice. The new IDW S1 is to be applied to valuation dates following its publication, i.e., April 8, 2026. There is therefore still a transition period.

What won’t change?

The objectified value remains the core principle of the IDW (para. 19). This can only be determined using forward-looking valuation methods (para. 13). Multipliers cannot replace these methods; at most, they can be used to validate the results (para. 14). The cost of capital must continue to be determined using the interest premium method and, for the objectified value, using a model-based approach (CAPM) (para. 111). The net asset value is, at most, an auxiliary value (para. 156), and premiums or discounts are not permitted when determining objectified values, even in the valuation of SMEs.