An venture capital industry group has released an updated set of guidelines on how venture capital firms should value their portfolio companies, but disagreement continues about whether the guidelines are appropriate.

The group, called Private Equity Industry Guidelines Group, or PEIGG, suggests venture firms should, among other practices, raise the value of companies they’ve invested in if those companies do well. The increased value should be reflected on the VC firm’s books, even if the company hasn’t raised a new round of funding.

Many venture firms have balked at doing this, because there’s no objective way to tell when a company’s performance has improved enough to merit such an increase. They say the proper time to raise a company’s value should come only during a financing, when investors negotiate with the company to set its value — which is when more market forces are at play in setting a realistic valuation.

See the group’s announcement here.

Here are the updated guidelines.

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