The London-based International Valuation Standards Council is asking for input on some of its new standards for performing valuations on financial instruments, real estate and intangibles.
Exposure drafts of the latest International Valuation Standards and the newly created International Professional Standards are now available for review and input. The consultations represent a step forward for the IVSC in its goal of establishing and maintaining effective, high-quality international valuation and professional standards.
The latest International Valuation Standards expand and update on IVS 2013. The proposed changes are supposed to provide greater depth and detail, as requested during the review process by IVSC members, including major accounting firms and other stakeholders.
“These two consultations reflect the IVSC’s continuing commitment to developing high quality international valuation standards which underpin consistency, transparency and confidence in valuations across the world,” said IVSC chairman Sir David Tweedie, a former chairman of the International Accounting Standards Board. “Valuations are relied upon in financial and other markets—it is no understatement to say they underpin the global economy. We therefore face enormous risks if businesses and real estate are incorrectly valued. The creation of the International Professional Standards is a particularly important step for the valuation profession. They will be vital in ensuring valuers act in the public interest, and will be instrumental in defining and promoting professionalism in the industry. We look forward to reading input from industry peers and stakeholders during the consultation process, and completing these important projects.”
The latest draft of the IVSs is the next step towards harmonizing the currently fragmented valuation process, according to Steven Sherman, who chairs IVSC’s Standards Board. “Without robust valuation standards, businesses, lenders and investors are at risk from unreliable financial information and improper understanding of real estate, intangibles, financial instruments and other assets which could cause significant problems for global markets,” he added. “By refining and adopting these standards, we will boost the transparency of, and confidence in, valuations for the benefit of business and the public.”
The International Professional Standards, developed by the IVSC Professional Board, aim to establish a high-quality approach to the education, development, assessment and conduct of professional valuers.
“The IPSs will help protect the public interest by ensuring that valuers act in a highly professional and ethical way,” said Greg Forsythe, chair of the IVSC’s Professional Board. “They improve the credibility of the valuation profession, enhance public trust and confidence, and increase the supply and demand for qualified valuers in sectors or markets where the professional infrastructure is weak or non-existent.”
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