The document discusses the Philippine Valuation Standards (PVS) 2nd Edition from 2018. It incorporates the International Valuation Standards (IVS) 2017 and provides guidance notes tailored for the Philippine setting. The PVS aims to establish consistent valuation practices, raise professional standards, and support government programs like land reform. It outlines reforms to valuation systems and standards to achieve more accurate property assessments. The 2nd Edition updates the content to align with changes in IVS 2017 and Philippine laws and regulations governing taxation and other valuation purposes.

1. Philippine Valuation Standards
2nd Edition, 2018
Incorporating the International Valuation Standards 2017 and
Providing Guidance Notes under Philippine Setting

2. Introduction
The Long Term Commitment of the Philippine Government on
the Land Reform Program:
• Alleviate poverty;
• Sustain economic growth by improving the land tenure security;
• Foster efficient land markets.

3. Proposed Valuation and Taxation Reforms
REFORM ACTION
Implement a valuation system that will
assess property values at their true
market levels;
Establish an independent national
authority that will set and enforce
valuation standards;
The proposed Valuation Reform Act
(VRA) was watered down by expanding
the BLGF mandate on appraisal instead
of creating the National Valuation
Authority (NVA)
Develop valuation standards for use by
government and private sectors
Publication of the Philippine Valuation
Standards, 1st Edition 2009 – Adoption
of the IVSC Valuation Standards under
Philippine Setting

4. Proposed Valuation and Taxation Reforms
REFORM ACTION
Raise the level of and professionalize
the property valuation industry.
Enactment of the Real Estate Service
Act (RESA) in 2009 intended to
professionalize the real estate practice
by transferring the regulatory functions
of the Department of Trade and
Industry (DTI) to the Professional
Regulation Commission (PRC) through
the Professional Regulatory Board of
Real Estate Service (PRBRES)

5. Roadmap of the PVS
2001
• Land Administration and Management Project (LAMP) was established.
• Australian Government (technical assistance)
• World Bank (financial support)
2009
• The Philippine Valuation Standards (1st Edition) – Adoption of the IVSC
Valuation Standards under Philippine Setting was published as part of a
wider on-going program of land reform in the Philippines.
2017
• The Philippine Valuation Standards 2nd Edition, 2018 is a component
project of the Technical Cooperation Project (TCP) entitled:
Mainstreaming Voluntary Guidelines on Governance of Tenure (VGGT),
under Food and Agriculture Organization of the United Nations (UNFAO)

6. The objectives of PVS 2009 included the
following:
To raise the quality of public and private sector valuations and
reporting of valuations;
To provide consistency and understanding between providers
and users of valuations at national and international levels;
To promote transparency and reliability of valuations for
disposal of government assets, financial reporting, secured
lending, transfers of ownership and litigation and taxation;
To reduce financial risk for users of valuations.

7. PVS Copyright:
• Copyright 2009 by the IVSC; all rights reserved, subject to
permission having been granted to the DOF to reproduce the 8th
edition of the International Valuation Standards (2007)
• No responsibility is accepted by the IVSC for the accuracy of
information contained in the text as republished or translated.
• The approved text of the International Valuation Standards 2017 is
that published by the IVSC in the English language and copies may
be obtained from the IVSC, 1 King Street, London EC2V 8AU,
United Kingdom. Internet: http://ivsc.org.
• Copyright 2017 by the IVSC – November 2017

8. PVS 2009 CHANGES IN THE STANDARDS
Concepts Fundamental to Generally
Accepted. (GAVP)
The generic valuation principles have been carried
forward into the IVS Framework. Other Valuation
Principles material discussing market value and land
and property has been merged into Asset Standard
PVS 400 Real Property Interests.
Code of Conduct Removed as a section but discussed under PVS
Framework Section 30.1
Property Type Not directly replicated. Some elements included
in individual asset standards.
Introduction to IVS 1,2,3 Not directly replicated. Some elements included in
General Standards IVS 103 Reporting and 104 Bases
of Value

9. PVS 2009 CHANGES IN THE STANDARDS
IVS 1 Market Value and IVS 2 Other Bases
of Value
Discussed at length in General Standards
IVS 104 Bases of Value
IVS 3 Valuation Reporting Principles carried forward into General
Standards IVS 103 Reporting
IVA 1 Valuations for Financial Reporting Now included in Asset Standard IVS 210
Intangible Assets.
IVA 2 Valuations for Secured Lending Now included in Asset Standard IVS 400
Real Property Interests
IVA 3 Valuation of Public Sector Assets for
Financial Reporting
Not directly replicated
GN1 Real Property Valuation and GN2
Lease Interests
Now included in Asset Standard IVS 400
Real Property Interests
GN3 Valuation of Plant and Equipment Now included in Asset Standard IVS 300
Plant and Equipment

10. PVS 2009 CHANGES IN THE STANDARDS
GN4 Valuation of Intangible Assets Now included in Asset Standard IVS 210
Intangible Assets
GN5 Valuation of Personal Property No equivalent in new standards. The
definition of personal property in the
previous standards was very broad and
covered many asset classes that are now
the subject of more specific standards. The
previous GN was withdrawn by the IVSB in
February 2010
GN6 Business Valuation Updated standards for business valuation
are in Asset Standard IVS 200 Business and
Business Interests
GN7 Consideration of Hazardous and Toxic
Materials
Replicated as PVS GN 600 Consideration of
Hazardous and Toxic Substances in
Valuation

11. PVS 2009 CHANGES IN THE STANDARDS
GN8 Cost Approach and GN9 Discounted
Cash Flow
Now included in General Standards IVS
105 Valuation Approaches and Methods
GN10 Valuation of Agricultural Property
types.
Replicated as PVS GN 200 Valuation of
Agricultural Properties
GN11 Reviewing Valuations Not directly replicated. Made mention in
General Standards IVS 103 Reporting
GN12 Valuation of Trade Related Property Replicated as PVS GN 700 Valuation of
Trade Related Property
GN13 Mass Appraisal Replicated as PVS GN100 Mass Appraisal
for Property Taxation
GN14 Valuations of Properties in
Extractive Industries
Replicated as PVS GN 400 Valuation of
Properties in the Extractive Industries

12. IVS 2007 CHANGES IN THE STANDARDS
GN15 Valuation of Historic Property Replicated as PVS GN 500 Valuation of
Historic Property
GN17 Valuation of Investment Property
under Construction
Now included in Asset Standard IVS 410
Development Property
Addition of PVS GN 800 Valuation for
Compulsory Acquisition

13. CONTENTS - PVS 2nd Edition, 2018
• Part I IVS 2017 (En toto)
• Part II Philippine Context
Focusing on Valuation for
Taxation and Other
Purposes
• Part III Guidance Notes
List of Acronyms
Introduction
Glossary
Framework
• PVS 101 Scope of Work
• PVS 102 Investigations and Compliance
• PVS 103 Reporting
• PVS 104 Bases of Value
• PVS 105 Valuation Approaches and Methods
General Standards
• PVS 300 Plant, Machinery and Equipment
• PVS 400 Real Property Interests
• PVS 410 Development Property
• Valuation for Taxation Purposes
Asset Standards

14. CONTENTS - PVS 2nd Edition, 2018
• Part I IVS 2017 (En toto)
• Part II Philippine Context –
Annotations to IVS 2017
• Part III Guidance Notes
PVS GN100 Mass Appraisal for Property Taxation
PVS GN 200 Valuation of Agricultural Properties
PVS GN 300 Reviewing Valuations
PVS GN 400 Valuation of Properties in the Extractive
Industries
PVS GN 500 Valuation of Historic Property
PVS GN 600 Consideration of Hazardous and Toxic
Substances in Valuation
PVS GN 700 Valuation of Trade Related Property
PVS GN 800 Valuation for Compulsory Acquisition

15. Part II: Philippine Context
Focusing on Valuation for
Taxation and Other Purposes

16. The contextualization to the Philippine setting was interspersed with the IVS
2007 manuscript which became the 1st Edition of the Philippine Valuation
Standards (PVS) 2009.
For PVS 2017, while IVS 2017 was adopted in toto in the first part, Part II contains
the Philippine Context Focusing on Valuation for Taxation and Other Purposes.
Part II contains contextual discussion to clarify and explain any departure from
the latest IVS considering the recent changes in the Philippines’ legal and
statutory framework. It takes into account existing laws, rules and regulations
pertaining to national and local valuation for taxation and other purposes.

17. Part III: Guidance Notes

18. International Valuation Standards (IVS) 2007, which was
adopted by the Philippine Valuation Standards (PVS) 2009
included guidance notes.
Guidance Notes are issues that relate to the application of
the Standards that frequently arise in valuation practice
and from those who use valuation services.
The Guidance Notes provide guidance on specific valuation
issues and how Standards are to be applied in more specific
business and service-providing situations. The Guidance Notes
complement and expand on the Standards and Applications,
with which they have equal importance.

19. IVS 2007/PVS 2009 included fifteen (15) guidance notes.
In the succeeding editions of IVS, the guidance notes were
removed for various reasons.
Either the elements were carried forward and merged with
other relevant topics/sections or the IVSC produced revised
Technical Information Papers (TIP) on the topics.
After the consultants deliberated on which portions of the PVS
2009 are still valid with regards to valuation practice in the
Philippines, eight (8) guidance notes were prepared and which
form part of the PVS 2017.