Measurement Date
Definition
The date at which Fair Value is determined under IFRS 13, ASC 820, and IPEV Valuation Guidelines. For PE and VC funds, the measurement date is typically the end of each calendar quarter, with formal Fair Value reporting to LPs within 45–60 days. The Valuer's obligation under the 2025 IPEV update is to document, defend, and persist the Fair Value mark at each measurement date — incorporating calibration evidence movement, known-and-knowable updates, maintainable earnings reconciliation, and (for hybrid instruments) scenario analysis. For founders, the measurement date matters because the offer at term sheet implicitly anchors a series of measurement-date marks across the holding period. A defended entry mark is also a defended trajectory; an optimised entry mark is a quarterly markdown waiting to happen.
Complementary Terms
Concepts that frequently appear alongside Measurement Date in practice.
The International Private Equity and Venture Capital Valuation Guidelines (IPEV) are the global standard PE and VC funds use to determine Fair Value of unlisted investments. Issued by the IPEV Board, the guidelines set out how a fund's Valuer documents and defends each portfolio company's Fair Value at every measurement date — typically quarterly.
A founder-side preparation discipline that builds the evidence base a Fund's Fair Value process needs at every measurement date — before the term sheet conversation begins. Distinct from valuation negotiation: a Fair Value defence isn't about arguing for a higher number, it's about producing the inputs the Fund's quarterly Fair Value model will consume for the duration of the investment.
The IPEV discipline that gives a Fair Value model its memory. Entry inputs (the most recent funding round price, comparable transactions, noted multiples, identified intangible assets) become reference points; deltas are tracked at every measurement date.
The IPEV Section 2.5 evidence standard: information that is 'Known or Knowable as of the Measurement Date' is in scope at every quarterly Fair Value remark, whether the founder surfaced it or not. Known information is on the company's books, in board minutes, or in disclosed correspondence.
The US GAAP standard that defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The International Financial Reporting Standard that defines fair value, establishes a framework for measuring it, and requires disclosures about fair value measurements. IFRS 13 introduces a three-level hierarchy based on observable market inputs and is foundational to the valuation of intangible assets in financial reporting.
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