“The valuations placed on the portfolios of derivative instruments held by financial institutions have been the subject of extensive scrutiny by financial regulators following the 2008 financial crisis,” says a new release from the International Valuation Standards Council (IVSC). “It is therefore the IVSC’s objective to provide greater transparency around the valuation process in order to assist management, investors, and other stakeholders in understanding the valuations.”

To advise it on the project, the IVSC Standards Board has formed an expert working group from representatives of major banks, including UBS, Deutsche Bank, and HSBC, as well as independent consultants and buy-side investors. The IVSC anticipates a public exposure draft by the third quarter, 2012.