The latest edition of the International Valuation Standards (IVS) marks an important milestone towards harmonising valuation practice worldwide.
IVS serve as the key guidance for valuation professionals globally and will underpin consistency, transparency and confidence in valuations which are key to investment decisions, financial reporting and finacial market stability.
IVS are the latest step in the IVSC’s mission to raise standards of international valuation practice as a core part of the financial system, for the benefit of capital markets and the public interest.
The Standards were drafted by the IVSC's independent technical boards and published following an extensive consultation process from April to October 2016. More than 100 official comment letters on the initial drafts of IVS were received from a range of stakeholders, including Valuation Profession Organisations, regulatory authorities, valuation service providers, individual professionals and academics.
What do the International Valuation Standards cover?
IVS comprises five 'General Standards' and six 'Asset Standards'. The General Standards set requirements for the conduct of all valuation assignments including establishing the terms of a valuation engagement, bases of value, valuation approaches and methods, and reporting.
The Asset Standards include requirements related to specific types of asset valuation, including background information on the characteristics of each asset type that influence value and additional asset-specific requirements regarding common valuation approaches and methods used. The assets standards cover:
- Businesses and Business Interests
- Intangible Assets
- Plant and Equipment
- Real Property Interests
- Investment Property under Construction
- Financial Instruments
The latest version of the Standards bring greater depth to the IVS, as recommended by member organisation, including the major accountancy firms and Valuation Professional Organisations.
Sir David Tweedie, Chairman of IVSC, said: “IVS represents the latest in IVSC’s continuing commitment to developing high-quality valuation standards. The valuation of assets, both tangible and intangible, plays an essential role in financial and real estate markets – and therefore the global economy. IVS will be instrumental in improving valuation practice and will bring greater efficiency to capital markets.”
Nick Talbot, CEO of IVSC said: “We are very thankful to our many member organisations and other stakeholders for their input to improve the Standards. This input has ensured IVS is fit for purpose and that its adoption will boost the transparency of, and confidence in, valuations for the benefit of business and the public. IVS has been designed with the specific aim of allowing continued, targeted improvements to the standards from the new expanded Standards Board we are putting in place.”
IVS for our members and sponsors:
- IVSC members: All member organisations of the IVSC are provided with a free electronic copy of IVS for their members and employees.
- IVSC sponsors: Sponsor organisations are provided with free access to IVSonline, which includes additional guidance and su[pporting documents as well as IVS, for their members and employees.
Hard copies of IVS
Hard copies of IVS are available from the IVSC Bookstore at a cost of GBP £80.
Soft copies of IVS 2017
Electronic copies of the IVS can be accessed through the IVSonline portal.