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Structure and Scope Review 2014

Structure and Scope Review 2014

The International Valuation Standards (IVSs) contain five different types of pronouncement.

  • The IVS Framework contains concepts and principles that are to be followed when applying the IVSs, but does not include any required actions.
  • The IVS General Standards contain actions that are required when setting up, carrying out and reporting a valuation.
  • The IVS Asset Standards contain any additional requirements for each of the main genres of asset, together with guidance on key issues that affect the valuation of that type of asset that need to be considered.
  • The IVS Application Standards contain additional requirements for the specified valuation purpose and guidance on matters that may be typically encountered.
  • The Technical Information Papers contain guidance on complying with specific requirements in one or more of the other standards or on dealing with matters where there is evidence of diverse practice.

The current arrangement of the standards and the titles for each type of pronouncement has been in place since 2011. However, although the titles and style of the content were changed in the major rewrite prior to the 2011 edition, previous editions of the standards had also contained five distinct types of pronouncement. The rationale for the different sections stems from the desire of many users for there to be a clear distinction between those parts of the standards that contain mandatory requirements and those that provide guidance and other supporting information.

However, as the IVS have become more widely used and recognised, a number of valuation providers and users have advised the Board that they feel the current arrangement of the standards is not as clear as it could be. For example, the IVS Asset Standards contain guidance under the heading “Commentary” and questions have been asked as to whether this has the same authority as guidance in a Technical Information Paper. There are also diverse views on the degree of detail that should be contained in the IVSs, with some arguing that more detail is required but others that the national and market differences mean that detailed guidance can only be produced at a national level.

The Board has therefore decided to review the scope and structure of the IVSs. A Consultation Paper was issued in July 2014, with a comment period closing on 10 October.

Following consideration of the comments received at its meeting in October 2014, the Board agreed in principle that changes to the structure of the standards should be proposed as part of the review of IVSs during 2015.

Background

Documentation

Consultation paper

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Summary of content letters and recommendations

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There are more than 180 member organisations
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