In June 2009 the IVSC Standards Board approved a project to update and improve the International Valuation Standards (IVSs). It agreed to follow the recommendation made by the outgoing standards board prior to the restructuring of the IVSC that regard should be had to the Critical Review of the standards that had been published in 2007 and the comments received on the recommendations in the Critical Review report.

The Board considered that in implementing these recommendations there was a need to considerably simplify the standards to improve their accessibility. It also decided that:

  • There was a need for the standards to address the valuation of financial instruments;
  • That the standards should not be presented as a rule book for valuers but a set of principles for good valuation practice that would be equally accessible and useful to valuation users and others interested in valuation.

In June 2010 an Exposure Draft of the proposed new Standards was published with a comment period of three months.

Following an initial review of the comment letters received at its meeting on 8 October 2010, the Board confirmed that it would undertake further consultation by arranging Round Table discussions with invited participants to discuss the main issues raised by the comment letters. These meetings were held in Hong Kong, London and New York.

After further review of the comment letters and of the Round Table discussions, the Board tentatively decided at its meeting in November 2010 that the following major changes should be made to the Exposure Draft:

  • To create an IVS Framework containing much of the material in IVS 100 - 103 in the Exposure Draft. The Board accepted that that much of this material was in the nature of a discussion and did not set mandatory requirements. Although the discussion of valuation concepts and principles is essential for the proper understanding and application of the IVSs, these needed to be clearly separated from those standards that set requirements as to what should be done in the course of a valuation assignment.
  • To create a new general standard dealing with the implementation phase of a valuation assignment. This would be include material that was more suited to a mandatory standard from the proposed IVS2 and IVS3 in the Exposure Draft, and fill a gap that some perceived existed between the scope of work and reporting standards. This was an alternative presentation of material proposed in the Exposure Draft intended to improve the logic and flow of the standards. It would contain no requirements that were not proposed in the Exposure Draft and therefore the Board agreed that no specific exposure period was required for this new standard.
  • To reorganise the Asset Standards (the 300 series in the Exposure Draft) so that the requirements of each standard are more clearly distinguished from the background discussion. This is to be done by putting the "standard" first and following this with the discussion of the nature of the assets in the sector, identification of valuation approaches commonly used and matters that are material when considering their value. In most cases the standard is brief, containing only specific requirements for the application of the principles contained in the general standards to that asset class.
  • The 201 series on Financial Reporting should restructured and presented differently. The majority of the text in the Exposure Draft will be retained but clearly presented as guidance on various valuation requirements under IFRS, and it should also be made it clear that IFRS, or such other accounting standard that may be relevant, are the standards that must be followed.

In February 2011 a Staff Draft was published incorporating the above amendments and many minor changes agreed by the Board. A number of comments were received on this draft.

At its meeting in March 2011 the Board considered a series of further comments and suggested amendments proposed by members of the Board and others. Subject to the changes agreed during this meeting, the Board unanimously approved all of the standards included in the Staff Draft except for IVS 232, Trade Related Property. The Board considered that further consultation is required on the interaction between this proposed standard and IVS 200 Businesses and Business Interests and IVS 230 Real Property Interest and has subsequently approved a dedicated project on this topic.

The Board also agreed that the approved standards would be effective from 1 January 2102, with earlier adoption encouraged.

A hard copy of the approved standards was published in July 2011, and for personal use only pdf files of the individual standards may be downloaded from this web site.

Translations of the International Valuation Standards

The official language of the IVSC is English. However, the IVSC recognises that it is important that preparers and users of valuation reports, regulators, academia, students and other interested parties in non-English speaking countries have access to the standards. The IVSC has granted permission to the following organisations to translate and reproduce the standards. The IVSC has not reviewed the quality of the translations

Language

Translated by

Bulgarian

Chamber of Independent Appraisers in Bulgaria

Chinese

China Society of Appraisers

Georgian

Expertise Institute for Valuation of Assets of Georgia

Japanese

Japanese Association of Real Estate Appraisers

Lithuanian

Lithuanian Audit, Accounting and Property Valuation Institute

Mongolian

Mongolian Institute of Certified Appraisers

Polish

Polish Federation of Valuers’ Associations

Romanian

The National Association of Romanian Valuers

Russian

Russian Society of Appraisers

Serbian

National Association of Valuers of Serbia

Slovenian

The Slovenian Institute of Auditors

Spanish

Asociación Profesional de Sociadades de Valoración

Ukrainian

Ukrainian Society of Appraisers

Please contact the IVSC for details as to how to obtain these translations.

June 2009 - Project Approved by Board and brief agreed for Technical Writer.

October 2009 - Technical Writer appointed.

June   2010  - Exposure Draft published.

September 2010 - Comment period closes.

October 2010 - Board considers comment letters on Exposure Draft.

November 2010 - Round Table discussions with invited stakeholders in New York, Hong Kong and London.

November 2010 Board reviews Report on Round Table discussions.

February 2011 Staff Draft published.

March 2011 Board reviews Staff Draft and comments received.  Approves 12 new Standards subject to agreed amendments.

July 2011 12 new standards published - effective date 1 January 2012.

Other Consultations:
During November 2010 the Standards Board held Round Table Meetings with invited participants in New York, Hong Kong and London. The Agenda for these meetings was to discuss a number of the major issues that the Board had identified from its analysis of the Comment Letters received. They were also used to seek comments from some significant constituents who had submitted comment letters. A Report on the Round Table meetings is available under Associated Documents.

Report on Round Tables December 2010

Staff Draft February 2011

An Exposure Draft of the proposed new standards was published in June 2010, with a 90 day comment period.

Exposure Draft June 2010

The comment letters are listed here:

02-06-2012 052 Ron Cohen
02-06-2012 051 European Public Real Estate Association
02-06-2012 050 Accounting Standards Board of Canada
02-06-2012 049 International Private Equity Valuation Board
02-06-2012 048 American Society of Appraisers Personal Property Committee
02-06-2012 047 KPMG
02-06-2012 046 Hong Kong Institute of Certified Public Accountants
02-06-2012 045 New Zealand Institute of Chartered Accountants
02-06-2012 044 Slovenian Institute of Auditors
02-06-2012 043 RICS
02-06-2012 042 ROZ Real Estate Council (Netherlands)
02-06-2012 041 Australian Property Institute
02-06-2012 040 Duff & Phelps
02-06-2012 039 American Society of Appraisers
02-06-2012 038 American Appraisal Associates
02-06-2012 037 Willamette Management Associates
02-06-2012 036 IACVA
02-06-2012 035 RICS Americas
02-06-2012 034 Deloitte
02-06-2012 033 Institute of Philippine Real Estate Appraisers
02-06-2012 032 PricewaterhouseCoopers
02-06-2012 031 Appraisal Institute
02-06-2012 030 Netherlands Council for Real Estate Appraisal
02-06-2012 029 Valuation Office Agency (UK)
02-06-2012 028 Tanguy Dehapoit
02-06-2012 027 Chartered Institute of Public Finance and Accountancy
02-06-2012 026 George Badescu
02-06-2012 025 Real Estate Information Standards
02-06-2012 024 Japanese Real Estate Institute
02-06-2012 023 Canadian Institute of Chartered Business Valuators
02-06-2012 022 Australian Accounting Standards Board
02-06-2012 021 Australian Heads of Treasuries
02-06-2012 020 Institute of Chartered Accountants in Australia
02-06-2012 019 Ernst & Young
02-06-2012 018 Corebrand
02-06-2012 017 Finnish Association of Real Estate Valuation
02-06-2012 016 ANEVAR (Romania)
02-06-2012 015 Associazione Società di Valutazioni Immobiliari per le Banche (Italy)
02-06-2012 014 Valuers World India
02-06-2012 013 Hong Kong Institute of Surveyors
02-06-2012 012 Jones, Roach & Caringella Inc.
02-06-2012 011 Asia Pacific Surveyors Ltd
02-06-2012 010 Japanese Association of Real Estate Appraisal
02-06-2012 009 Institute of Foresters of Australia
02-06-2012 007 Property Institue of New Zealand
02-06-2012 006 Italian Permanent Committee on Business Valuation
02-06-2012 005 Ukranian Society of Appraisers
02-06-2012 004 Sowunmi Wliiams
02-06-2012 003 World Bank
02-06-2012 002 S Puzenko
02-06-2012 001 Seow It Sze

A Critical Review Report on the previous standards was published in June 2007. This made recommendations on how the standards could be improved. Comments were invited on this report.  (Comment letters no longer available)

2007 Critical Review Report