Valuation

New valuation standards introduced




International Valuation Standards Council (IVSC) has introduced new criteria to improve industry practices across the world.

IVS 2017 sets requirements for the conduct of valuation assignments, such as establishing the terms of a valuation engagement, bases of value and reporting.

The move follows a request from council members, including major accountancy firms and other stakeholders, to introduce greater depth to the IVS.

Sir David Tweedie, chairman of IVSC, said: “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.”

The new standards were the product of an extensive consultation process held between April and October 2016, with more than 100 official comment letters helping to shape the initial drafts.

IVS 2017 comprises five general standards and six asset standards, including requirements for background information on the characteristics of each asset type that influence value.

Nick Talbot, CEO of IVSC, added: “We are very thankful to our many member organisations and other stakeholders for their input to improve the standards.

“This input has ensured IVS 2017 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.”

Leave a comment