The International Valuation Standards Council (IVSC) has released the final version of its 2017 Standards (IVS 2017) that incorporates comments from over 100 stakeholders, including valuation profession organizations (VPOs), individual professionals, and academics. The organization will push for worldwide adoption. IVSC chairman Sir David Tweedie has said, bluntly, that “valuation is not a profession. If valuers wish to become a profession, and continue with self-regulation, then VPOs must adopt IVS and enforce compliance—no exceptions.” IVS 2017 adoption becomes mandatory this July, according to the IVSC website.
New board structure: The IVSC has also created a new Standards Review Board that will amend and approve the international valuation standards going forward. The new board will have two focused subject matter expertise boards reporting to it: a Tangible Assets Standards Board (covering real estate, plant and machinery, and personal property) and a Business Valuation Standards Board. Now that IVS 2017 has been finalized, the new boards are now operational, and it is expected that the first meetings will take place this March.
In its efforts to promote worldwide adoption, the IVSC and the World Association of Valuation Organisations (WAVO) strengthened their ties by signing a memorandum of cooperation (MOC) in 2016 to jointly promote the importance of adopting the standards. Also, The Appraisal Foundation released a document “A Bridge From USPAP to IVS” that connects the two sets of standards to help make appraisals compliant with both sets of standards. This was a significant step toward establishing a set of globally accepted ethical and professional standards for valuation.
The final published version of IVS 2017 has been made available to members and sponsors. Others can access it through IVSonline (subscription required). You can access a redlined version of the draft standards if you click here (no subscription required).
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