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
|
NORTH AMERICAN CONFERENCE
OF APPRAISAL ORGANIZATIONS (NACAO)
INTERNATIONAL VALUATION STANDARDS COMMITTEE
A SHORT STATEMENT ON PRESENT ACTIVITIES
Statement prepared for the 2000 NACAO Meeting hosted by the American
Society of Appraisers by Mr Greg McNamara, LFAPI & A.I.Arb.A, Chairman
of the International Valuation Standards Committee
February 2000
Brief Background
The IVSC was founded in 1981. Some 52 countries are currently
represented, through the leading valuation and appraisal societies in
those countries.
There is a Management Board of 12 representative countries,
who meet every 6 months. The last meeting was in Beijing, China which
was the Annual General Meeting of the Committee. The next board meeting
will be in Auckland, New Zealand, 30 March to 2 April 2000, to coincide
with the Pan-Pacific Valuation Conference.
The Membership comprises both developed industrial nations,
often with long-established real estate professions with their own Standards
and the emerging economies which were formally controlled and which are
now grappling with free market forces.
A meeting with the International Accounting Standards Committee
(IASC) occurred in London on the 3 February 2000. IVSC is represented
on the Consultative Group of the IASC. The continuing liaison between
our two organizations is very important in our Standards setting.
What is property valuation, how important is it, and why
do we need Standards? Estimates of Foreign Direct Investment (FDI) vary,
but one suggests that the annual figure might be in the excess of $1 trillion.
The UK Economist Intelligence Unit estimates that the property component
might be as much as 20% of total FDI, whether direct or indirect investment
into real estate. Property is a significant element of global business.
It is often used as collateral through bank lending, and the occasional
volatility of property markets over recent years has contributed to the
economic turbulence in stock markets from time to time.
What investors, regulators and users of valuations require
is consistency, clarify, reliability and transparency in valuation reporting
world-wide.
IVSC Objectives
-
To formulate and publish valuation Standards and procedural
guidance for the valuation of assets. Primarily for use in financial
statements in the public domain, but also for loan purposes.
-
To encourage the harmonization of Standards among the
world's Countries (States).
-
To achieve recognition in statements of International
Accounting and other reporting Standards.
-
To provide world-wide acceptance and observance.
International Standards
Our most recent publication comprises:-
-
An introduction, explaining the purpose and objectives
-
A statement of General Valuation Concepts and Principle
-
Valuation Standards, of which there are four:
- Market Value Basis of Valuation
- Other Valuation Bases
- Valuations for Financial Statements
- Valuations for Loan Security, Mortgages and Debentures
- Applications and Performance Guidance, of which there
are four to date:
- Going Concern Concept of Valuation
- Consideration of Hazardous & Toxic Substances in Valuation
(e.g. Environmental Contamination)
- Valuation of Plant & Machinery
- Business Valuation
- Commentaries
Various reports on global valuation issues, published from time to
time.
The existing Standards volume is available in the printed form both
loose-leaf and bound. The existing Publication is now available in its
full format on the IVSC web site at www.ivsc.org .
The Standards Sub-Committee is currently in process of rewriting the
Standards Publication, the initial work being released in the Valuation
2000 Conference next July in Las Vegas with expected attendance of some
4,000 valuers from 20 countries world-wide. That Conference is sponsored
by the American Society of Appraisers, The Appraisal Institute and The
American Society of Farm Managers and Rural Appraisers, is "for professionals
committed to valuation solutions". The new work will be entitled "International
Valuation Standards & Guidance". Additional topics are to be included
and a Register of these projects was summarized in the IVSC's September
Newsletter "Global Valuation Issues". I have attached a copy of that
Register to this Paper. A new Edition of the Newsletter is about to
be published.
Current Issues
The expanding work of IVSC has necessitated the employment of full-time
staff being the Executive Director, located in London. The urgent requirement
to upgrade existing Standards has led to the appointment of three (3)
Writers, one from the UK, US and Australia. A conceptual business plan
has been developed entitled "Target 2002", detailing a phased program
to develop global valuation standards.
- There is a pressing need for a set of uniform Standards world-wide.
Many countries have their own Standards and Pan-Continental Standards
are now emerging:
- TEGOVA - The European Group Of Valuers Association has recently
published its own Standards, the "Blue Book" which is directed particularly
to the equirements and regulation of the European Union.
- Pan-American Union of Valuers Associations - Mainly covering
South America - wish to formulate their own Standards.
- Asian Valuers Association - Largely depends upon the International
Standards.
- Harmonization of Standards is on-going and a hierarchy will emerge.
Improved communication between Standard-setters is being actively sought.
Dialogue needs to be urgently established among the main Standards-setters
e.g. USPAP. Ultimately, we would like to see the International Standards
pre-eminent.
The emergence of "Fair Value" as it applies to property assets is a little
contentious. Where there is an established market, Fair Value would equate
to "Market Value" as defined in IVSC Standards. The impairment of assets
is also a subject which closely involves valuers in the accounting process.
- The current IVSC Standards Project has provoked a lot of interest
and sponsorship is required to fund the Project. Fundraising so far
has been successfully conducted with valuation and appraisal institutes
from various countries. Other sources include lawyers and accountants
who are vitally concerned with the Project. We are still awaiting formal
confirmation of World Bank support, although we have hear informally
that support will be forthcoming. The IMF are unable to give IVSC financial
support, as the Project falls outside its technical mandate but they
will follow our work with great interest.
Current Strategy
-
To continue to liaise with other Standards-setters, both valuers
and accountants.
-
To improve our profile with other world bodies, including the UN,
World Trade Organization, OECD, IOSCO, World Bank, IMF and others.
-
To encourage the harmonization of Valuation Standards.
-
To support the valuation professions in the emerging economies.
-
To provide Global Standards that become fully recognized and adopted
by regulators, companies and the banking community.
In Conclusion
Property is an important resource. Users and regulators need consistency
and comparability in its financial measurement.
The IVSC fully intends to meet its responsibilities in providing Standards
that are acceptable to the requirements of the Global market. For further
information, please view the IVSC web page at www.ivsc.org
End.
page updated
17-Nov-2008
|
