Are global valuation standards closer than you think?

BVWireIssue #74-3
November 19, 2008

The London-based International Valuation Standards Council (IVSC) recently announced the appointment of two new boards—The International Valuation Standards Board and the International Valuation Professional Board—aimed at increasing the oversight and implementation of global valuation standards.

The IVSC contends that improving the quality and scope of international valuation standards may provide many benefits, including the better identification of investment or lending risk, improved confidence in financial reporting, and a more consistent approach to portfolio and asset valuation.  According to the Chairman of the newly appointed Standards Board, Chris Thorne, “The financial crisis has brought into sharp focus the need for better consistency and transparency in the valuation of business assets of all types.  Regardless of how the numbers are used in constructing financial statements, there is no doubt that investors and the public generally will benefit from the disclosure of objective and transparently derived values, especially in cross border transactions.”

The Standards Board has the task of defining standards for the undertaking and reporting of valuations in consultation with providers, users and regulators. The Professional Board was created to provide a focus for the currently disparate valuation profession around the globe; its goal will be to promote the profession generally and to benchmark educational and professional standards for valuation. Brad Wagar, Chairman of the new Professional Board, observes, “These are challenging times for people and capital markets the world over.  What better time for the International Valuation Standards Council to advocate international valuation standards coupled with the enhanced education of, and implementation of best practices by, the world’s valuation professionals?”

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