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FOR IMMEDIATE RELEASE 30 JULY 1999

‘INTERNATIONAL VALUERS ASSOCIATION ACHIEVES MAJOR BREAKTHROUGH’

Consistent global financial reporting standards in accounting and valuation moved a step closer with the publication of Draft International Accounting Standard, Investment Property, by the International Accounting Standards Committee (IASC).

The International Valuation Standards Committee (IVSC) was represented on the IASC Steering Committee by John Edge, UK representative to IVSC.

The Draft recommends that all investment property should be measured at fair value. The IVSC has expressed concern previously at increasing evidence of confusion as to the relationship between the accounting term 'fair value' and the valuation term ' market value'. The guidance on the fair value of investment property included in the Draft reflects the market value guidance contained in International Valuation Standard 1.

The Draft recommends that an enterprise should be encouraged, but not required, to measure all investment property on the basis of a valuation by an independent valuer who holds a recognised and relevant professional quality and who has recent experience in the location and category of the investment property being valued.

The Draft directs those who wish to comment to consider the International Valuation Standards of the IVSC and other material produced by the IVSC.

"The pressure now to measure to fair value/market value, rather than holding assets at cost, is very widespread, even in those economies where markets are relatively thin or untested," commented John Edge. "It is how the USA reacts, where fair value of assets in the balance sheet is not yet a requirement, that will be most interesting, especially in the context of the call for a common set of core accounting standards worldwide."

Philippe Malaquin, IVSC Chairman commented, “It is an objective of IVSC that International Valuation Standards be recognised within international amounting standards. The release of this Exposure Draft by IASC represents a major breakthrough for IVSC. It is evidence of the value that IASC attaches to the contribution that IVSC can make to effective financial reporting.”

END

NOTES

1. Copies of IASC’s Exposure Draft, E64, Investment Property may be obtained directly from IASC’s Publications Department, 166 Fleet Street, London EC4A 2DY, UK, Telephone: +44 (171) 427-5927, Fax: +44 (171) 353-0562, E-mail: publications@iasc.org.uk.

2. Details for the ordering of International Valuation Standards can be obtained from IVSC Executive Director, 4 Lygon Place, London SW1W 0JR,
   Phone / Fax: 44 (0) 879 306
   E-mail: mtissier@ivsc.org

3. Press Enquiries:
   John Edge, IVSC representative to IASC Steering Group, Investment Property,
   Telephone: +44 (171) 493 4114, E-mail: john.edge@knightfrank.com Marianne Tissier, IVSC Technical Director. Contact details as above.

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