The International Valuation Standards Council (IVSC), a standard setter for valuation practice and the valuation profession, has opened a consultation on future revisions to the International Valuation Standards (IVS).
Following the publication of IVS 2017, which represented a major milestone in the harmonisation and improvement of the International Valuation Standards, IVSC has considered where it should focus efforts for further targeted improvements to IVS.
IVSC’s consultation has been launched to gain feedback from valuation stakeholders on the topics that IVSC should address as part of its current agenda and additional topics that stakeholders think should be priorities or added to IVSC’s agenda.
As part of a new approach to revising IVS, IVSC will publish agenda consultations every year to make the standard setting process more open and consultative.
IVSC’s Standards Boards, spearheading this process, have identified a number of major valuation topics that they think need to be looked at as part of additions to IVS, and would like to gain feedback on. These are:
- Non-Financial Liabilities
- Discount Rates
- Early Stage Valuation
- Biological Assets
- Extractive Industries
In addition, IVSC intends to make targeted improvements to certain areas of IVS 2017, including:
- Control Premium and Discount for Lack of Control (IVS 200 para 90)
- Capital Structure Considerations (IVS 200 para 130)
- Development Value
The Boards have also identified certain topics for potential future projects. These represent medium to longer terms goals of IVSC and are not priorities. These topics include:
- Analysis of Commercial Lease Transactions
- Specialised Public Service Assets
- Sustainability and renewable energy
- Automated valuation models and data analytics
- Valuation of Personal Property including Art and Antiques
- Recovery and Resolution
- Price vs value
- Distressed situations
- Valuation in markets susceptible to change
- Alternative Financing Arrangements
The consultation will run for 90 days, ending 15th August 2017. IVSC is committed to a fully open and collaborative consultation process, so all comments received as part of the consultation process will be published on IVSC’s website.
Mark Zyla, Chairman of IVSC’s Standards Review Board said, “IVS 2017 was designed with the specific aim of allowing continued, targeted improvements to the standards from our new expanded Standards Boards.”
He continues, “Our IVS Agenda reflects the outcome of initial meetings of IVSC’s Tangible Assets, Business Valuation and Standards Review Board, where we distilled the main findings of our own Gap Analysis and collated the many valuable suggestions for revisions to IVS from stakeholders in previous consultations.”
“We are looking forward to receiving views and recommendations on our IVS Agenda from practitioners, valuation professional organisations, academics, corporations and regulators, and working collaboratively with them to improve IVS.”
Nick Talbot, CEO of IVSC said, “Our latest consultation reflects IVSC’s continuing commitment to continue to develop high quality international valuation standards which underpin consistency, transparency and confidence in valuations across the world.”
Mentioning further he said, “Valuations are vital to the global economy and are relied upon in financial and other markets. It is hugely important that valuation standards evolve and develop so that they are fit for purpose.”