The “time has come” for global quality control standards for valuations, according to Bill Hanlin (Hanlin Moss Yi, PS), president of the International Association of Consultants, Valuators and Analysts (IACVA). At last week’s 2015 International Valuation Forum in Atlanta, Hanlin announced that IACVA will soon issue an exposure draft, Quality Control Standards for Valuation and Appraisal Firms. There will be a comment period, and then the standards—which will be voluntary—will be finalized.

Currently, the only country that has quality control standards is China, which has a peer review process for valuations, according to Hanlin. IACVA feels that international standards for quality control will improve the public trust in the valuation profession. Accountants have a peer review process and they are high on the list of “most trusted” professionals around the globe, he says. Currently, regulators are asking, “How do we know this valuation report is any good?” These proposed standards will also serve to head off government regulation in this area.

Hanlin also announced that Business Valuation Resources will help disseminate these new proposed standards. Stay tuned to the BVWire for an announcement of the exposure draft’s release. We will also post it on BVR’s new Global Business Valuation Resource Centre.