The International Valuation Standards

Trade Related Property

Proposed standard 232 not approved because of need to clarify objective and reconsider status of IVSC’s pronouncements on this subject.

Discussion Paper to examine issues and seek views on extent of standards or guidance required

June 2011

Q4 2012

SB

Project Brief agreed. Applications for Working Group membership invited. Fresh approach made to major institutes for nominations.

Uncertainty

Need for workable solutions in response to request by FSB for better disclosure of uncertainty.

Guidance and possible standards amendment.

August 2009

Q3 2012

SB

Work Group established late October. Although additional financial instrument expertise still sought.

Discounted Cash Flow

Update of existing guidance in GN9

Technical Information Paper

June 2010

Q4 2011

PB

Following consideration of comments made on Exposure Draft and during review by Board at November meeting, paper now being prepared for final Board approval.

Cost Approach

Update of existing guidance in GN8

Possible change to Standards.
Technical Information Paper

June 2010

Q4 2011

PB

Following consideration of comments made on Exposure Draft and during review by Board at November meeting, paper now being prepared for final Board approval.

Contributory Asset Contributions (Intangible Assets)

Adapting Appraisal Foundation guidance for US for international application

Technical Information Paper

Nov 2010

Q2 2012

PB

Discussions with Appraisal Foundation on most appropriate form of comment by IVSC.

Valuer/Auditor guidance –
Joint project with IAASB

Need for improved mutual understanding of role of internal and external valuation experts and of auditors role in checking valuations in statements

Guidance on Valuer’s role in audit process.

Sep 2010

Q3 2012

PB

Working Draft considered by Board. Further work required before ready for release as an Exposure Draft.

Code of Ethical Principles

To identify key elements of ethical conduct in valuation and promote adoption.

To establish principles of conduct for professional valuers

Mar 2010

Q4 2011

PB

Revised Code approved by Board at November meeting. Publication due early December.

Professional Valuer

To promote awareness of valuation profession and attributes of a professional valuer.

Identifying characteristics of professional valuer

Mar 2010

Q2 2012

PB

Exposure Draft approved by Board for release late November.

Fairness Opinions

Evidence of diversity in practice in different states and world regions, notwithstanding different regulatory regimes

Code of practice or guidance

Jan 2011

Q2 2012

PB

Exposure Draft close to finalisation and circulation to Board for approval.

Intangible Assets

Update of existing guidance issued in Feb 2010 to reflect changes in IVS.

Technical Information Paper

Jan 2011

Q4 2011

PB

Revised GN4 approved by Board subject to final review of examples. Publication anticipated January 2012.

Customer Relationships

Joint project with The Appraisal Foundation (US) to develop technical guidance.

Possible Technical Information Paper if IVSC publishes its own version.

Oct 2010

Q4 2012

PB

Working draft received from TAF.
Discussions to take place on IVSC input.

Control Premiums

Joint project with The Appraisal Foundation (US) to develop technical guidance.

Possible Technical Information Paper if IVSC publishes its own version.

Oct 2010

Q2 2013

PB

Awaiting confirmation of progress from TAF working group.

OTC Instruments
Valuation methods

A lack of understanding or acceptance of methods developed to value different types of instruments adversely affect investor confidence and market efficiency.

Technical Information Paper. Possible Standards update.

Jun 2010

Q3 2012

SB

Working Group established October 2011. Still seeking some additional representation from buy side organisations.

Extractive Industries

Concerns expressed by exchange regulators, especially in Asia, at diversity of valuation practice IPOs in sector. Also possibility that IASB may require greater valuation in revision of IFRS

Discussion Paper.  Responses to this will guide further deliverables

Oct 2010

Q4 2012

SB

Working group formed October 2011 although further industry representation is being sought.

Specialist Government Property

Lack of consistency in valuation of public infrastructure assets.

Technical Information Paper

Mar 2011

Q4 2012

PB

Initial comments on scope of project received from working group.

Credit / Debit Valuation Adjustments

There is diversity in the identification of counter party risk in valuing OTC derivatives and methods used to reflect risk.

Technical Information Paper
Possible new standard

June 2010

Q3 2012

PB

Working Group formed.

Forestry

Evidence of inconsistency in the valuation of forestry assets under IAS 41.

Discussion Paper. Responses to this will guide further deliverables

Oct 2010

Q3 2012

SB

Working Group formed and preliminary comments reported to Board

Liabilities

Increasing need to value liabilities other than financial instruments or leases in financial statements is revealing diversity of valuation approaches

Discussion Paper. Responses to this will guide further deliverables

Oct 2010

Q4 2012

SB

Limited response to call for Working Group. Applications still invited, particularly from practitioners outside USA.

Illustrative Examples

There is a need to develop practical illustrations of principles in IVS to different situations to aid understanding and application.

It is anticipated that this will be a rolling project. Date indicates probable publication of first set of examples

June 2011

Q3 2012

PB

Working Group formed. Meeting held with IASB project team to discuss coordination with its “Education Materials” project. IASB agreed proposals in October. There will be mutual representation on respective groups. Project plan prepared.

Glossary

To provide glossary of commonly used valuation terms to promote consistency of use and interpretation internationally

Glossary to be maintained on IVSC web site

Jun 2010

Q3 2011

Joint

Glossary is to be maintained on web site and periodically reviewed by Boards. There will be facility for comments on specific definitions.

Investment Property

Investment Property is a major asset class that has own IFRS reporting standard and where issues not covered by general real property standard need to be addressed

Possible new Standard and TIP

Nov 2011

Q1 2013

SB

Project approved by Board in November. Project brief under preparation and Working Group to be formed.

PROJECTS UNDER CONSIDERATION

Use of third party information

Possible concern over inconsistent approaches to reliance on information provided by others, eg another expert or client.

Guidance

To be considered by Boards at meetings in March 2012.

Liquidity Premia

Financial crisis revealed significant diversity of approach to adjustments made to certain financial instruments to reflect loss of liquidity.

Financial Instruments Expert Group has produced two internal papers providing academic overview.  Consideration being given as to whether this topic warrants IVSC guidance

Investment  Company Portfolios

New regulations under EU AIFM Directive and IOSCO project on valuations of Collective Investment Schemes likely to create demand for standards / guidance

Liaison with IOSCO and ESMA on timing of the regulators’ projects and required sco