This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

International Valuation Standards Council (IVSC)

IVSC (International Valuation Standards Council)

The information on this page is organised as follows:

 

Background

International Valuation Standards Council

The International Valuation Standards Council (IVSC) is the established international standard setter for valuation. Through the International Valuation Standards Board, the IVSC develops and maintains standards on how to undertake and report valuations, especially those that will be relied upon by investors and other third party stakeholders. The IVSC also supports the need to develop a framework of guidance on best practice for valuations of the various classes of assets and liabilities and for the consistent delivery of the standards by properly trained professionals around the globe.

The IVSC has published International Valuation Standards (IVS) since 1985. Existing pronouncements are subject to biennial review and the IVSC also undertakes projects in other areas as circumstances warrant.

Membership of IVSC is open to organisations of users, providers, professional institutes, educators, and regulators of valuation services. IVSC members appoint the IVSC Board of Trustees.

International Valuation Standards Board

The International Valuation Standards Board (IVSB) is the body that sets the standards for how to perform and report on valuations. In 2008, the IVSB replaced the former IVSC Standards Board. The IVSB shall not be less than six nor more than nine persons appointed for three-year terms (one renewal term allowed).

International Valuation Professional Board

The International Valuation Professional Board (IVPB) is responsible to promote the profession generally and to benchmark educational and professional standards for valuation. The IVPB shall not be less than six nor more than nine persons appointed for three-year terms (one renewal term allowed).

IVSC Board of Trustees

Governance, oversight, and funding of the structure are the responsibility of the IVSC Board of Trustees. Among the specific responsibilities of the trustees are:

  • appoint the members of the IVSB and IVPB
  • review annually the strategy of the IVSC and its effectiveness
  • review all applications for membership of the IVSC and put forward recommendations to the AGM
  • approve amendments to the IVSC Bylaws

Trustees are appointed for a renewable term of three years. Each Trustee is expected to have a global perspective and an understanding of how the IVSC can best operating in the world economy, business and financial reporting environments. The Board of Trustees shall not be less than six nor more than eleven persons, and Trustees are drawn from geographically diverse areas.

 

IVSC pronouncements

Types of pronouncements

The IVSC produces the following pronouncements:

  • IVS Framework - a preamble to the other pronouncements setting out generally accepted valuation principles and concepts, but does not contain any procedural requirements
  • General Standards - general requirements for undertaking all valuation assignments, unless modified by specific Asset Standards or Valuation Applications
  • Asset Standards - contain modifications and additions to the General Standards for specific classes of assets
  • Valuation Applications - contain modification and additions to other standards when undertaking valuations for specific purposes
  • Technical Information Papers - supports the application of other pronouncements through various means, e.g. how asset characteristics of asset impact valuations, appropriate valuation methods used in particular situations, and guidance on judgements required in developing valuations in specific situations.

Pronouncements applying from January 2014

In July 2013, the IVSC approved the 2013 edition of International Valuation Standards (IVSs). These pronouncements come into effect from January 2014. Subscription information is available on the IVSC 'IVSonline' website (all IVSC pronouncements issued since 2011 are available through this service).  Printed versions of the IVSs are also available.

The International Valuation Standards

Contents

  • IVS Framework
  • General Standards
    • IVS 101 Scope of Work
    • IVS 102 Implementation
    • IVS 103 Reporting
  • Asset Standards
    • IVS 200 Businesses and Business Interests
    • IVS 210 Intangible Assets
    • IVS 220 Plant and Equipment
    • IVS 230 Real Property Interests
    • IVS 233 Investment Property Under Construction
    • IVS 250 Financial Instruments
  • Valuation Applications
    • IVS 300 Valuations for Financial Reporting
    • IVS 310 Valuations of Real Property Interests for Secured Lending
  • Technical Information Papers
    • TIP 1 Discounted Cash Flow
    • TIP 2 The Cost Approach for Tangible Assets
    • TIP 3 Intangible Assets

Cooperation with the IFRS Foundation

In March 2014, the IVSC and IFRS Foundation entered into an statement of protocols for cooperation on International Financial Reporting Standards and International Valuation Standards, acknowledging a common interest in ensuring that standards and guidance developed by the IVSC through its standard setting boards on how to measure fair value is consistent, where appropriate, with IFRS standards (for example IFRS 13 Fair Value Measurement), and is comprehensive and well-developed.

The key commitments included in the statement of protocols is outlined below:

Commitments by the IVSC
  • Provide input to the IASB on proposed amendments to IFRS standards and developments in financial reporting that are relevant to fair value, through regular exchanges of information, meetings and the IASB staff’s outreach processes for researching new issues.
  • Consider the IASB’s comments, as appropriate, in developing IVSs and valuation requirements for financial reporting in general, and providing feedback as appropriate.
  • Provide the IASB staff or members with the opportunity to be included in IVSC consultative groups, committees and task forces, which pertain to fair value measurement for the purposes of financial reporting, as appropriate, recognising that the IVSC determines the composition of these groups on a case-by-case basis.
  • Inform the IASB, through its staff, its working groups or other appropriate IFRS Foundation body, when the IVSC becomes aware of diversity in practice concerning fair value measurement in financial reports.
Commitments by the IASB
  • Provide input to the IVSC standards boards, as appropriate, on proposed amendments to standards and developments in valuation that are relevant to financial reporting, through regular exchanges of information, meetings and the IVSC staff’s outreach processes for researching new issues.
  • Consider the IVSC’s comments in the normal course of its work in developing IFRSs, and financial reporting in general containing fair value measures and providing feedback as appropriate.
  • Provide the IVSC’s staff or members with the opportunity to be included in the IASB’s advisory and consultative groups, committees and task forces, as appropriate, recognising that the IFRS Foundation determines the compositions of these groups on a case-by-case basis.
  • Inform the IVSC, through its staff, its working groups or other appropriate IVSC body, when the IASB becomes aware of diversity in practice concerning fair value measurement in financial reports.
Commitments by both parties
  • Keep abreast of developments, inform each other and exchange views about emerging and divergent practice issues and research in determining fair value for the purposes of financial reporting under IFRS.
  • Organise, as and where necessary, discussion sessions for the staff or members of both parties, in order to highlight any relevant issues that may impact upon their work and the standards they publish.

The full statement of protocols is available on the IVSC website.

 

Contact information

International Valuation Standards Council
1 King Street, London EC2V 8AU
United Kingdom

Website: www.ivsc.org

Email: ivsc @ ivsc.org
Phone: +44 (0) 20 3178 7807

Executive Director
Marianne Tissier
Email: mtissier @ ivsc.org

 

Related news

  • Collaboration planned between IVSC and IFRS Foundation

  • Mar 06, 2014

  • The International Valuation Standards Council (IVSC) and the IFRS Foundation announced that the two organisations will deepen their co-operation in the development of International Financial Reporting Standards (IFRS) and International Valuation Standards (IVS). Main focus of the statement of protocols announced today is the co-ordination on fair value measurement.

  • IVSC consults on investment property

  • Feb 04, 2014

  • The International Valuation Standards Council (IVSC) has issued two exposure drafts on investment property. Both spring from the publication of a discussion paper on the valuation of investment property that was published in December 2012.

  • IVSC draft guidance on counterparty and own credit risk in valuations

  • Dec 05, 2013

  • The International Valuation Standards Council (IVSC) has published an exposure draft which would provide guidance on the determination of fair value under IFRS 13 'Fair Value Measurement', and for other purposes. The draft paper focuses on how counterparty credit risk and own credit risk are taken into account in the measurement of certain financial assets and financial liabilities measured at fair value.

  • FSB discusses accounting and convergence

  • Nov 11, 2013

  • The Financial Stability Board (FSB) met on 8 November in Moscow. At the meeting, the FSB discussed vulnerabilities in the global financial system and reviewed work plans for completing core financial reforms.

  • Sir David Tweedie inducted into Accounting Hall of Fame

  • Aug 13, 2013

  • Sir David Tweedie, former chairman of the IASB, was inducted into the Accounting Hall of Fame on 5 August 2013. Sir David's induction occurred at the American Accounting Annual Meeting in Anaheim, California. The Accounting Hall of Fame is located at Ohio State University and has honored 90 accountants since its inception in 1950.

  • IVSC consults on derivatives valuation

  • Jul 02, 2013

  • The International Valuations Standards Council (IVSC) has released an exposure draft on the valuation of equity derivatives, the first of a planned series that will include similar guidance on derivatives for foreign exchange, fixed income and commodities.

  • IVSC publishes guide on valuation professional organisations

  • May 02, 2013

  • The International Valuation Standards Council (IVSC) has published a guide on valuation professional organisations. The guide outlines the role of the valuation profession and the role and responsibilities of valuation professional organisations.

  • IVSC consults on valuation of investment property and public sector assets

  • Dec 03, 2012

  • The International Valuation Standards Council (IVSC) has issued two due process documents seeking feedback on valuation topics. A discussion paper has been released on the valuation of investment property (particularly in meeting the requirements of IAS 40 'Investment Property'), and an exposure draft on the valuation of specialised assets used by public sector entities for service delivery.

  • IVSC and IFAC renew their Memorandum of Understanding

  • Oct 26, 2012

  • The International Valuation Standards Council (IVSC) and the International Federation of Accountants (IFAC) have renewed their Memorandum of Understanding (MoU), which will further strengthen the collaborative efforts of both organisations in areas of common interest.

  • IVSC issues competency framework for valuers

  • Oct 02, 2012

  • The International Valuation Standards Council (IVSC) has released a paper entitled 'A Competency Framework for Professional Valuers' which seeks to facilitate the development of consistent professional standards and their recognition in the valuation profession.

  • IVSC calls for views on valuation of trade related property

  • Aug 02, 2012

  • The International Valuation Standards Council (IVSC) has released a discussion paper on the valuation of trade related property, which includes buildings or other structures that are purpose built for a specific type of business activity. Examples of trade related property include hotels, theatres and fuel stations, together with others such as bars, restaurants, casinos, clubs, and healthcare properties.

  • IVSC explores extractive industry valuations

  • Jul 19, 2012

  • The International Valuation Standards Council (IVSC) has formally launched a new project designed to provide greater valuation guidance to the mining, oil and gas industries. In a Discussion Paper being distributed to industry participants, the IVSC is seeking input on the form and scope of valuation guidance needed in the extractive industries, and consults on current practice on the types of assets being recognised and valued, valuation methodologies employed, and the recognition of intangible assets and goodwill in practice.

  • IVSC issues proposed guide to assist professional valuers who participate in the audit process

  • Jun 18, 2012

  • The International Valuation Standards Council (IVSC) has issued for comment a draft guide, The Role of the Professional Valuer in the Audit Process. The draft guide is intended to provide professional valuers with a better understanding of an auditor’s role and how professional valuers can be more effective when assisting auditors and entities during the audit process.

  • International Valuation Standards Council update

  • Dec 23, 2011

  • An update of recent developments in relation to the International Valuation Standards Council (IVSC), including access to IVSC standards, collaboration with the IASB, code of ethical principles and the IVSC work plan.

  • New IVSC appointments

  • Nov 14, 2011

  • The International Valuation Standards Council (IVSC) has announced a number of new appointments, following the annual general meeting of the organisation held in Hong Kong on 5 November 2011.