The new RICS Valuation—Global Standards (generally known as the ‘Red Book’) come into effect on 31 January and replace the edition issued in 2017. There are relatively few changes from the 2017 edition, and nearly all of those apply to real property only.
RICS anticipates larger changes in the accompanying ‘Basis for Conclusions.’ Here’s a clear summary of the situation from Valuology.
Valuology partner Chris Thorne particularly highlights a revolutionary change in this new edition of the Red Book, caused by the introduction of IVS’ ‘should’ phrasing This will ultimately influence real property and business valuation professionals:
RICS has never before attempted to direct how its members should value a given type of property in given circumstances, having previously recognised that this is both impractical and contrary to the ethos that it is the valuer’s professional responsibility to choose the appropriate method or methods to adopt. However, this direction is now embedded in the Red Book via the back door of the IVS.