That’s the conclusion of an analysis the International Valuation Standards Council (IVSC) carried out in conjunction with the Asociación Española de Análisis de Valor (AEV). The AEV is the professional association that represents the Spanish Registered Valuation Companies that carry out around 85% of the valuations for regulated purposes in Spain. The analysis focused on the alignment between the International Valuation Standards (IVS) and the Spanish national regulations contained within the ECO Order 805/2003. Even though there are no major contradictions between them, the IVSC and AEV make several recommendations for additions to the ECO Order. They are:
- Adoption of IVS Core Principles of valuation standard-setting and valuation;
- Adoption of the definitions contained within the IVS Glossary;
- Inclusion of a section on compliance with IVS within valuation reports;
- Inclusion of a Scope of Work or Terms of Engagement as per IVS 101 Scope of Work;
- Inclusion of minimum report contents as per IVS 103 Reporting; and
- Inclusion of sensitivity analysis for the determination of values based on unobservable or estimated inputs, as this is particularly helpful during periods of uncertainty such as during the recent coronavirus pandemic.
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