IVSC board members are regularly invited to participate in and speak at conferences organised by leading Valuation Professional Organisations around the world.  With expertise throughout the world, the IVSC boards are well equipped to give insight to the latest developments in the valuation profession. 

Recently, IVSC Financial Instruments Board member, Fernanda Diaz Rodrigues, and IVSC Tangible Assets Board member, Molefi Kubuzie, gave presentations to VPOs in their respective home countries. Fernanda shared an update on the work IVSC is doing to update standards for Financial Instruments valuation with the Union of Panamerican Valuers (UPAV); and Molefi presented the latest IVS updates to member of the South African Institute of Valuers (SAIV).

We spoke to them both to find out more about these conferences and the topics discussed:

 

Fernanda Diaz Rodriguez - Union of Panamerican Valuers (UPAV)

In August, the Panamerican Union of Valuation Associations (UPAV) hosted four virtual sessions to discuss the International Valuation Standards (IVS) and the important role it plays in promoting and facilitating best practice and professional ethics. Over 340 professionals from across Latin America took part with expertise mainly in real-estate and machinery valuation, but also in business, intangible and financial assets valuation.

UPAV has become responsible for spreading the IVS throughout the region by leading an Iberoamerican effort to translate the IVS into Spanish and Portuguese.

In the second session, Germán Noguera (Colombia), long-time friend and supporter of the IVSC, and a strong advocate for the IVS, outlined the agenda and set the stage for the main speaker, Leandro Escobar (Spain), member of the IVSC Advisory Forum, to comment on the valuation approaches for Business (IVS200), Intangible Assets (IVS210), and Non-financial liabilities (IVS220).  José García (Venezuela), César Cantú (México) and the newly appointed member of the IVSC Tangible Assets board, Eduardo Rottmann (Brazil), joined the panel for an engaging and very informative discussion.

I was honored to be invited as a guest speaker and used the opportunity to comment on topics including the creation of value, the normalization of interest rates, goodwill, non-financial liabilities from a financial perspective and the IBOR transition.

Most importantly though, I presented a number of topics being discussed in the IVSC’s Financial Instruments Board amid the revision of the IVS500. Governance - which underlies the valuation process with a proportional rigor according to the complexities and risks entailed by each FI position in stand-alone and within a portfolio; and Data - the first challenge to overcome in the process to build a sound and fit-for-purpose valuation.

The Great Recession following the subprime (2007) and financial (2008) crises, left harsh consequences that our profession must not forget. As a consequence, we should see a greater appetite and drive to adopt and continuously improve IVS, globally. Though the crises were not originated in Latin America, the adoption of IVS across the region will help to develop markets and provide a base for comparison, both domestically and across borders. The effort has to be regional as evidenced by the key to success of the Southeast Asian unicorns.

 

Molefi Kubuzie - South African Institute of Valuers (SAIV)

The South African Institute of Valuers (SAIV) invited me, in my capacity as IVSC Tangible Assets Standards Board Member, to present to the SAIV members and others within the Valuation Profession on the International Valuation Standards (IVS).

The South African Institute of Valuers was founded in 1909 and is the national society of professional real estate valuers. The Institute is dedicated to serving the public interest by advancing high standards for members of the appraisal profession and has been a member of the IVSC for many years.

Today it has some 1,100 members representing at least 50% of registered valuers in South Africa.

As the representative body of the valuation profession in Southern Africa, the Institute is in the business of promoting excellence by:

  • Setting and maintaining high standards of professional proficiency, ethics and education 
  • Striving to provide the appropriate educational programmes, sources of data and information 
  • Marketing and creating awareness of the benefits of the professional services of its members to existing and potential clients 
  • Monitoring and making representations on relevant legislation in the best interests of its members and their clients.

My invitation to speak came about as SAIV understands the critical role that the IVS plays in the Valuation Profession and also in highlights the critical role Valuers play in the Real Estate industry.

It is important, therefore, that SAIV members gain regular updates on the IVS and the work of the IVSC, especially at this time in light of changes that were introduced through the updated IVS earlier this year.

In my presentation, I gave a comprehensive overview of the IVS and touched on pertinent matters such as the reliability and credibility of valuations and how we can preserve the quality of reports, ensuring that we garner public trust in what we do. I also reflected on what it is that keeps us relevant in an industry that is so important to financial stability and investor confidence.

I was pleased to be able to answer lots of great questions about the recent changes to IVS, as well as the broader work of the IVSC, which included the publication earlier this year of information to support valuers during periods of market uncertainty. The questions raised in the webinar demonstrated the central importance of the IVSC and IVS. The issues of consistency of application throughout the globe was revealed to be the valuers preoccupation, concern and focus.

The webinar organised by SAIV was extremely professional and very informative. The though-provoking and relevant questions from participants highlighted a superb awareness of, and respect for IVS and professional in South Africa should be commended for their efforts.