International Valuation Standards Council

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ORDER IVS 2007

ABOUT IVSC

THE INTERNATIONAL VALUATION STANDARDS

BOARDS
- Board of Trustees
- Professional Board (IVPB)
- Standards Board (IVSB)

MEMBERSHIP

SPONSORS & FUNDING

MEETINGS

NEWS

PUBLICATIONS

ABOUT THE INTERNATIONAL VALUATION STANDARDS COUNCIL (IVSC)

The IVSC is an independent, not-for-profit, private sector organisation.

The objectives of the IVSC are to

• Create and ensure an independent and transparent international valuation standards setting process
• Develop and maintain a highly effective comprehensive set of high quality international valuation standards that are understandable, practical to implement and which protect the public interest
• Identify where local or regional standards differ from the international valuation standards, and work toward greater compatibility and harmonisation between local or regional requirements and the International Valuation Standards
• Contribute to the development of the global valuation profession and protect the public interest by encouraging high quality best practices by the global valuation profession
• Be the international voice of the valuation profession.

A short history of the IVSC

Discussions between representatives of the UK and US valuation profession in the late 1970s led to the founding of The International Assets Valuation Standards Committee (TIAVSC) in 1981. The Committee changed its name in 1994 to the International Valuation Standards Committee (IVSC). Until 2003, the IVSC was an unincorporated association comprising professional valuation associations from around the world, which were bound by a single constitution. In 2003, the IVSC became a not-for-profit organisation incorporated in the USA. The Committee, which was founded with a membership of twenty national associations, had grown by the year 2007 to include associations, with member or observer status, representing 52 countries.

The first edition of International Valuation Standards was published in 1985. The eighth, and current edition, was published in 2007.

Background

The IVSC has been in existence for more than 25 years. Its origins were in the need identified by a number of professional bodies from around the world for uniformity in the valuation approaches used in real estate markets. Over the past decade it has evolved and expanded and now produces standards for many types of assets, including plant and equipment, intangible assets and businesses. The International Valuation Standards are already recognised and accepted by a wide range of organisations including the UK Financial Services Authority, the Hong Kong Securities and Futures Commission, the Securities and Exchange Board of India and the European Public Real Estate Association amongst others. IVSC has also worked in liaison with the International Accounting Standards Board (IASB) in producing guidance on valuations required under IFRS, an increasingly important need as IFRS is adopted in more and more states.

Restructuring the IVSC

As demand increased for valuation standards in different sectors and markets, it became clear to IVSC that its constitution and structure no longer could provide it with the legitimacy or resources required to meet the challenges provided by the global markets and the pace at which they change. The IVSC was created as a membership organization with members being national professional valuation institutes. However, the model of professional bodies setting standards in the public interest is not one that is widely accepted in the international arena. This challenge was similar to that faced by accountants a few years ago. The present International Accounting Standards Board evolved from this process, and as a subsequent success the International Accounting Standards Board (IASB) provided a good model for IVSC to follow.

In January 2007 the IVSC published proposals for a radical restructuring of the organization to transform the IVSC into a non-government, private standard setter with robust and open procedures for setting, maintaining and interpreting international valuation and reporting standards. The intent of the IVSC was to achieve the same success in securing the worldwide adoption of standards for the performance of valuations as the IASB has with accounting standards.

The IVSC restructuring proposals were accepted by the membership in April 2007 and revised Bylaws adopted in November 2007. A short twelve-month interim period before the restructured IVSC became operational in October 2008.

Headquartered in London, the new IVSC structure has the following main features:

• The IVSC remains as a non-profit organisation incorporated in the US
• The IVSC acronym is retained but the title changed to the “International Valuation Standards Council” to reflect the broader remit of the organization
• The organisation has three main bodies:
  • an independent global Board of Trustees responsible for the strategic direction and funding of the IVSC
  • a Standards Board appointed by the Trustees, but with autonomy over its agenda and the creation and revision of standards
  • a Professional Board appointed by the Trustees to promote professional and educational standards for valuation; to assist in the development of high quality practices by the world’s valuers and development of the profession in developing countries
• Membership of IVSC will be open to users, providers, professional institutes, educators and regulators of valuation services. Members will be provided a forum for participation with the objective of advising the Boards on agenda decisions and priorities in the work of the IVSC.

For further information, please see:
— IVSC Bylaws (pdf)
— Proposal on Restructuring the IVSC (pdf)

page updated 17-Nov-2008

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