LONDON--The International Valuation Standards Council (IVSC), the global standard setter for valuation practice and the valuation profession, has launched IVS 2017, marking an important milestone towards harmonising valuation practice across the world.
IVS 2017 will serve as the key guidance for valuation professionals globally and will underpin consistency, transparency and confidence in valuations which are key to investment decisions as well as financial reporting.
The launch is the latest step in 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 have been created following an extensive consultation process from April to October 2016. More than 100 official comment letters on the initial drafts of IVS 2017 were received from a range of stakeholders, including valuation profession organisations such as RICS, individual professionals and academics.
Ben Elder, RICS’ Director of Valuation said: “RICS is a member organization of IVS and as such we have played an active role in developing the revised IVS. We are actively updating the RICS’s Red Book to incorporate the new standards. We hope this will be completed by July 1st 2017 which is the proposed implementation date for IVS 2017. We believe that continued wide adoption of IVS will boost the transparency of, and confidence in, valuations for the benefit of business and the public.”
IVS 2017 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 assets, 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 latest version of the Standards bring greater depth to IVS, as was requested by members, including the major accountancy firms and other stakeholders.
Sir David Tweedie, Chairman of IVSC, said: “IVS 2017 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 2017 will be instrumental in improving valuation practice and will bring greater efficiency to capital markets.”
Notes to the editor:
Confidence through Professional Standards
RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve.
We accredit 125,000 professionals and any individual or firm registered with RICS is subject to our quality assurance. Their expertise covers property, asset valuation, real estate management; the development of infrastructure; and the management of natural resources, such as mining, farms and woodland. From environmental assessments and building controls to negotiating land rights in an emerging economy; if our members are involved the same professional standards and ethics apply.
We believe that standards underpin effective markets. With up to seventy per cent of the world’s wealth bound up in land and real estate, our sector is vital to economic development, helping to support stable, sustainable investment and growth around the globe.
With offices covering the major political and financial centres of the world, our market presence means we are ideally placed to influence policy and embed professional standards. We work at a cross-governmental level, delivering international standards that will support a safe and vibrant marketplace in land, real estate, construction and infrastructure, for the benefit of all.
We are proud of our reputation and work hard to protect it, so clients who work with an RICS professional can have confidence in the quality and ethics of the services they receive.
About the International Valuation Standards Council (IVSC)
The International Valuation Standards Council (IVSC) is the global standard setter for valuation practice and the valuation profession. It is an independent, not-for-profit organisation.
IVSC develops and maintains high-quality international valuation standards which underpin consistency, transparency and confidence in valuations across the world.
IVSC facilitates collaboration and cooperation among its member organisations, who are valuation practitioners, financial services businesses, NGOs, regulators and academic institutions.
The governance of IVSC is overseen by a global Board of Trustees which is responsible for the overall strategic direction and funding of IVSC. An independent Standards Review Board ensures consistency and quality with the focused subject matter expertise boards, namely The Tangible Assets Standards Board and the Business Valuation Standards Board. The Membership and Standards Recognition Board monitors the professionalism of IVSC’s member bodies and ensures market recognition of International Valuation Standards.
For more information, please visit: www.ivsc.org.