The International Valuation Standards Council (IVSC) Annual General Meeting (AGM) took place this year at Maison de la Chimie in the heart of Paris, gathering over 150 valuation leaders and experts from around the globe. Hosted by Compagnie Nationale des Commissaires aux Comptes (CNCC) and Conseil Superieur de L’ordre des Experts-Comptables (CNOEC), and sponsored by HypZert and Taqeem, the AGM is a key fixture in the calendar of valuation leaders. This year’s event ran over three days and included thematic discussions and presentations, expert panels, and invaluable networking opportunities.
A Review of the IVSC AGM
During the AGM, the IVSC’s technical boards convened to review the feedback received during the recent consultation on proposed updates to the International Valuation Standards (IVS). These discussions provided an opportunity for stakeholders to reach a consensus on many of the proposed changes, setting the stage for the anticipated release of an IVS update in January 2024. Attendees at the AGM had a unique chance to explore these proposed changes through presentations and discussions, including a public (virtual) meeting of the Standards Review Board.
A notable point of discussion revolved around the potential revision of the IVS publication schedule. Two key changes were considered: firstly, an extension of the implementation period into 2024, which would grant Valuation Professional Organisations (VPOs) more time to integrate and adopt the revised standards. Secondly, there was a discussion around shifting to a three-year update cycle from the current two-year framework. This approach aims to balance the need to be responsive to market and practitioner requirements with the practical implications of adopting the latest standards.
Engaging with Influential European Stakeholders
The IVSC routinely uses physical meetings to undertake engagement with key stakeholders, including regional and national standard setters and regulators, as well as VPOs and end user communities. This AGM was no different as it also facilitated meetings with influential European stakeholders, including the European Financial Reporting Advisory Group (EFRAG) and Caisse des Depôts et Consignations (CDC), France’s largest state-owned bank. These interactions provided an opportunity to strengthen partnerships and explore collaborative initiatives to further the field of valuation.
Raising Awareness and Demand for IVS
The Membership and Standards Recognition Committee (MSRC) and the Europe Committee convened to further their mission of raising awareness and demand for IVS and high-quality valuation professionalism. Their initiatives included establishing a network of VPOs and experts across Africa and fostering university engagement in Europe and globally. The Europe Committee also dedicated time to discuss the ongoing topic of ‘prudent value,’ as outlined in the Basel III requirements.
Insightful Discussions at the AGM
The AGM featured in-depth discussions led by the IVSC Advisory Forum Working Group and Advisory Forum of VPOs and other IVSC member organisations. Topics covered included the ‘drivers of future change in valuation,’ ‘gaining recognition for the valuation profession,’ ‘the evolution of ESG and its impact on valuation,’ ‘Prudential Value,’ ‘valuation inspection criteria,’ and ‘regulation of the valuation profession.’ These discussions offered valuable insights into how these issues are being addressed by VPOs worldwide and underscored the pivotal role of the IVSC/IVS and the Advisory Forum in meeting the evolving needs of valuers.
The Advisory Forum also hosted a panel session focused on the future of the valuation profession featuring prominent voices from the valuation industry, including representatives from organisations such as the American Society of Appraisers (ASA), Australian Property Institute (API), CBV Institute, and the Saudi Authority of Accredited Valuers (Taqeem). The session delved into the dynamic landscape of valuation and examined the crucial drivers of change shaping the profession. The panel explored a diverse range of topics, from the influence of AI and technology in valuation processes to the increasing significance of ESG and sustainability considerations. They also discussed the growing trend towards specialisation within valuation and the implications of the expanding wealth of data now available. This session also provided attendees with a unique opportunity to network and share insights on how their respective organisations are adapting to these transformative shifts.
The Advisory Forum also hosted a thought-provoking session aimed at advancing the global recognition of the valuation profession, led by AFWG Chair, John Martin. The panel featured influential figures from JLL, The Appraisal Foundation, RICS, and the Australian Property Institute. The session considered the significant progress made over the last decade in achieving consensus around a unified set of International Valuation Standards (IVS). While Valuation Professional Organisations (VPOs) have been pivotal in fostering education, training, ethics, and discipline within the valuation profession, there remains a disparity in global recognition compared to other well-established professional fields. The panel explored the critical role that VPOs play in earning this recognition and identified the obstacles they face. Attendees also had the opportunity to engage in an open dialogue with the panellists and other participants, where they contemplated the necessity, benefits, and challenges of establishing a globally recognised valuation profession.
Annual General Meeting
IVSC Chair, Alistair Darling:
“The past year unfolded against a backdrop of profound complexity, marked by the tail end of the COVID-19 pandemic and the far-reaching economic consequences of this global crisis. The fallout, characterised by disrupted global trade, stressed supply chains, inflationary pressures, and governmental attempts at stabilisation through fiscal stimulus measures, continues to reverberate across economies worldwide. Additionally, the ongoing conflict in Ukraine, beyond its tragic human toll and the devastation of communities, added further complexity, disrupting the supply of key commodities and driving up inflation.
These challenges have placed an even greater emphasis on the importance of credible, consistent, and transparent valuations. Valuation lies at the heart of many business and investment decisions, and in a volatile economic climate, the demand for high- quality, reliable valuations that adhere to international standards has never been higher. It is within this context that the IVSC continues to play a pivotal role, underlining our commitment to globally accepted valuation standards and professionalism.
The importance of the IVSC’s mission to promote the adoption of International Valuation Standards (IVS) cannot be understated in this economic environment. The IVS drive transparency, quality, efficiency, consistency, and equity in markets, which makes them more attractive to investors and fosters a climate of confidence.
This past year, we marked an important milestone in our evolution with the inauguration of our first regional office in Asia, situated in Singapore. This initiative is set to significantly boost our engagement with various stakeholders, ensuring our standards incorporate diverse expertise and best practices. This is a testament to our commitment to truly be an international body, cultivating a global dialogue on valuation standards. The participation of Singapore Finance Minister, Indranee Rajah, at the launch ceremony, where she delivered an insightful keynote speech, underscored the importance of this initiative to Singapore, Asia and to the global valuation profession….”
Memorandum of Understanding
On 10 October 2023, the IVSC signed a Memorandum Of Understanding (MOU) with the two leading accountancy professional bodies in France — CNCC and Conseil supérieur de l’ordre des experts-comptables. This significant event underscores the importance of collaboration and the IVS within the French valuation community, demonstrating the commitment to advancing global valuation standards.
A Chance to Network
In addition to the extensive programme of working sessions, AGM delegates also had the opportunity to enjoy cultural and social aspects of Paris, including a guided tour of the Centre Pompidou, a walking tour of the Musée Rodin gardens, and Dinner aboard Le Capitaine Fracass as it sailed along the Seine.
The IVSC is grateful to CNCC and CNOEC for hosting this year’s AGM, to HypZert and Taqeem for sponsoring, and to all participants from around the world who made the event a success. Plans are already underway for next year’s AGM hosted by the Hong Kong Institute of Surveyors (HKIS) and with the generous support of HypZert as a confirmed sponsor. The 2024 AGM is scheduled to take place in November 2024, with further details available soon.
If your organisation is interested in exploring sponsorship opportunities, please feel free to contact the IVSC at [email protected]
More details will follow, and the IVSC eagerly anticipates the opportunity to continue shaping the future of valuation standards.