A RECENT UPDATE
The International Valuation Standards Council (IVSC) has issued an updated version of the suite of International Valuation Standards (IVSs). They become effective from 31 January 2022, however, the IVSC encourages early adoption from the date of publication. The latest edition of the International Valuation Standards (IVS) marks an important milestone towards harmonizing valuation practice worldwide.
Introduction
The International Valuation Standards Council (IVSC) issued an updated version of International Valuation Standards (IVS) and its Basis for Conclusions (BC) in July and August 2021. From 31 January 2022, the latest updated IVS will become effective. Adoption before the effective date is allowed.
As explained in the IVS, these are the “standards for undertaking valuation assignments using generally recognized concepts and principles that promote transparency and consistency in valuation practice.” IVS comprises five ‘General Standards’ and six ‘Asset-specific 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 asset valuation, 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 assets standards cover:
• Businesses and Business Interests (IVS 200)
• Intangible Assets (IVS 210)
• Plant and Equipment (IVS 300)
• Real Property Interests (IVS 400)
• Development Property (IVS 410)
• Financial Instruments (IVS 500)
Among various updates, several major changes are described below:
• Core Valuation Principles
• New Section on Allocation of Value (IVS 104)
• Revised scope for Business and Business Interests (IVS 200)
• New chapter on Inventories (IVS 240)
• Revised Scope for IVS 400 Real Property Interests
Read the full report
