International_Valuation_Standards

International Valuation Standards Council

International Valuation Standards Council

Provfessional valuation organization

The International Valuation Standards Council (IVSC) is an independent, not-for-profit, private sector standards organisation incorporated in the United States and with its operational headquarters in London, UK. IVSC develops international technical and ethical standards for valuations on which investors and others rely.

Quick Facts Formation, Headquarters ...

IVSC is responsible for developing the International Valuation Standards and associated technical guidance. To ensure that the public interest is effectively protected, it also engages with other bodies active in the regulation of the financial markets to ensure that valuation issues are properly understood and reflected. IVSC works cooperatively with national professional valuation institutes, users and preparers of valuations, governments, regulators and academic bodies, all of whom can become members of IVSC and play a role in advising the Boards on their agenda priorities.

In developing its standards and technical guidance, IVSC follows a process of issuing discussion papers and exposure drafts for public comment.

The IVSC is recognised by the United Nations Department of Economic and Social Affairs.

Objectives and activities

The objectives of the IVSC are to strengthen the worldwide valuation profession by:

  • Developing high-quality international standards and supporting their adoption and use
  • Facilitating collaboration and cooperation among its member organisations
  • Collaborating and cooperating with other international organisations and regulatory authorities
  • Serving as the international voice for the valuation profession

Boards

Board of trustees

The IVSC is governed by a board of trustees responsible for the strategic direction and funding of the organisation. The trustees are also responsible for the appointment of the Standards Boards and Membership and Standards Recognition Board.[1]

The current board of trustees comprises:[2]

  • Alistair Darling (Chair)
  • Lim Hwee Hua (Vice Chair)
  • Kathleen Casey
  • Marcelo Barbosa
  • Ana Maria Elorrieta
  • Jacque Potdevin
  • Zhang Genghua
  • Jay E Fishman
  • Narayan Seshadri
  • Ranjit Ajit Singh
  • Iseo Pasquali
  • Linda de Beer
  • Japheth Katto
  • Aiko Sekine

Notable former members:

History

The origins of IVSC lie in the International Assets Valuation Standards Committee (TIAVSC) that was formed in 1981 with the objective of developing consistent standards across national borders. The founder members were a number of professional institutes mainly concerned with real property valuation. The Committee changed its name in 1994 to the International Valuation Standards Committee, and from the late 1990s started to include member organisations concerned with the valuation of assets other than real property.

Following a restructuring of the organization in 2008, its name was again changed, this time to the International Valuation Standards Council. As of 2022, the IVSC has over 180 organisations in membership from around the world.[3] The organisations in membership accredit and regulate the conduct of individual valuers who specialize in the valuation of many different types of assets and liabilities, such as business interests, real property, intangibles, capital equipment and financial instruments.

The IVSC and the International Organization of Securities Commissions (IOSCO) announced a Cooperation Agreement in 2022 with a focus on enhancing international valuation standards and professionalism.

The International Valuation Standards

The International Valuation Standards (IVS) are international standards that consist of various actions required during the undertaking of a valuation assignment supported by technical information and guidance. The IVSC's technical boards are responsible for the development and maintenance of the International Valuation Standards. The boards are independent and solicit public comment by issuing discussion papers and exposure drafts.[4]

The latest version of the Standards (IVS 2022) was published in July 2021 and came into effect on 31 January 2022.[5]

Objective of IVS

The objective of the International Valuation Standards (IVS) is to increase the confidence and trust of users of valuation services by establishing transparent and consistent valuation practices. A standard within IVS will do one or more of the following:

  • identify or develop globally accepted principles and definitions,
  • identify and promulgate considerations for the undertaking of valuation assignments and the reporting of valuations,
  • identify specific matters that require consideration and methods commonly used for valuing different types of assets or liabilities.

The IVS consist of mandatory requirements that must be followed in order to state that a valuation was performed in compliance with the IVS. Certain aspects of the standards do not direct or mandate any particular course of action, but provide fundamental principles and concepts that must be considered in undertaking a valuation.

IVS structure

IVS Glossary

The glossary defines certain terms used in the International Valuation Standards, but does not attempt to define basic valuation, accounting or finance terms, as valuers are assumed to have an understanding of such terms. Defined terms are Asset/Assets, Client, Jurisdiction, May, Must, Participant, Purpose, Should, Significant and/or Material, Subject or Subject Asset, Valuation Purpose or Purpose of Valuation, Valuation Reviewer, Valuer, Weight and Weighting.

IVS Framework

This serves as a preamble to the IVS. The IVS Framework consists of general principles for valuers following the IVS regarding objectivity, judgement, competence and acceptable departures from the IVS. The contents contain information on Compliance with Standards, Assets and Liabilities, Valuer, Objectivity, Competence and Departures.

General Standards

The five General Standards set forth 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. They are designed to be applicable to valuations of all types of assets and for any valuation purpose. The General Standards are IVS 101 Scope of Work, IVS 102 Investigations and Compliance, IVS 103 Reporting, IVS 104 Bases of Value and IVS 105 Valuation Approaches and Methods.

Asset Standards

The Asset Standards include requirements related to specific types of assets. These requirements must be followed in conjunction with the General Standards when performing a valuation of a specific asset type. The Asset Standards include certain background information on the characteristics of each asset type that influence value, and additional asset-specific requirements on common valuation approaches and methods used. The Asset Standards are IVS 200 Business and Business Interests, IVS 210 Intangible Assets, IVS 300 Plant and Equipment, IVS 400 Real Property Interests, IVS 410 Development Property and IVS 500 Financial Instruments.

Revisions to IVS

The IVSC Standards Board intends to continuously review the IVS and update or clarify the standards as needed to meet stakeholder and market needs. The board has continuing projects that may result in additional standards being introduced or amendments being made to the standards in this publication at any time.[6]

Members

The IVSC has an internationally diverse array of member organisations, which they classify as Valuation Professional Organizations (VPO), Associate Valuation Professional Organizations (AVPO), Institutional Members (IM), Corporate Members (CM), and Academic Members (AM).

Members can be sorted by country, name and member type by clicking on the buttons in the header of the columns.

More information Country, Member ...

Sponsors

The following organizations are listed as sponsors of the IVSC in 2022/23:[7]

References

  1. [1]
    "Boards". IVSC. Retrieved 21 June 2017.
  2. [2]
    "Members of the Board of Trustees". IVSC. Retrieved 21 June 2017.
  3. [3]
    "Our Members". IVSC. Retrieved 21 June 2017.
  4. [4]
    "International Valuation Standards". IVSC. Retrieved 21 June 2017.
  5. [5]
    "IVSC launches new global standards for valuation professions". IVSC. Retrieved 21 June 2017.
  6. [6]
    "IVS Open Consultations". IVSC. Retrieved 21 June 2017.
  7. [7]
    "Sponsors". IVSC. Retrieved 21 June 2017.
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