Global standard setter the International Valuation Standards Council (IVSC) has opened a consultation on future revisions to the international valuation standards (IVS) in a number of areas, despite only publishing IVS 2017 in January
Major valuation topics under discussion for targeted improvements include non-financial liabilities, discount rates, early stage valuation, biological assets, extractive industries and inventory.
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), and development value.
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 says it will publish agenda consultations every year to make the standard setting process more open and consultative.
There are also a number of topics which represent medium to longer terms goals of IVSC and are not priorities, but may be the subject of projects in the future and which the standards body lists. They 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; privatisation; and alternative financing arrangements.
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.
‘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.’
The consultation will run for 90 days, ending 15 August 2017.
IVS 2017 was published in January with adoption becoming mandatory on 1 July 2017.
IVSC Invitation to Comment is here.
