Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

IVSC Setting Valuation Standards

1,688 views

Published on

International Valuation Standards Council

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

IVSC Setting Valuation Standards

  1. 1. 27/11/2014 1 Setting Standards in Valuation Chris Thorne – Director Valuation Standards Valuation Risk Forum 26 November 2014 INTERNATIONAL VALUATION STANDARDS COUNCIL Why Standards? • Standards protect the public interest – Improve consistency (helps preparers and users) – Identify best practice (and what is not) – Aid comprehension by investors – Effective standards can reduce regulatory intervention (and costs of compliance) – International standards assist cross border investment and transactions 2
  2. 2. 27/11/2014 2 Why Standards? • Valuation lacks organisation – Lack of professional infrastructure – Fragmentation across asset classes and industry sectors – Lack of recognition by policy makers – Low levels of public trust 3 The IVSC’s Mission • To establish and maintain effective, high-quality international valuation and professional standards, and to contribute to the development of the global valuation profession, thereby serving the public interest. 4
  3. 3. 27/11/2014 3 Strategic Objectives • Developing and promoting a single set of high quality global valuation standards. – The International Valuation Standards (IVSs) set protocols for the process of undertaking and reporting of valuations. • Developing and promoting International Professional Standards (IPSs) – The IPSs will serve as a benchmark for professional bodies to drive global consistency in competency and ethics for professional valuers. 5 6 Global reach Countries with IVSC members
  4. 4. 27/11/2014 4 The IVSC - How we are Organised Board of Trustees: Strategy, governance and fund-raising Standards Board: Sets standards for Valuation IVS Professional Board: Sets standards for Valuers IPS Develops and promotes profession globally 7 The IVSC - How we are Funded • Membership – About seventy professional organizations with members involved in providing valuation services from over fifty countries. – About twenty institutional (ie public sector or not for profit) and academic members. • Sponsorship – Twenty sponsoring organizations including six global accounting networks, banks and large valuation firms. 8
  5. 5. 27/11/2014 5 How do we work? The IVSC has no powers. Its authority comes from: • Consulting with valuation users and regulators to identify their concerns • Working with professional valuers to identify solutions • Developing and promoting those solutions • Standards set through transparent process, including consultation. Enforcement of and compliance with IVS is by those adopting the standards, e.g. regulators, professional bodies, clients 9 Engagement with other organisations • Active dialogue with other standard setters that reference valuation to promote consistency, eg IASB, IAA, IPEV and CFA Institute (GIPS). • Agreement with IFAC signed in 2010. • IVSC represented on IAASB CAG. • Statement of Protocols signed with IASB in February 2014. • Engagement with intergovernmental bodies, eg IOSCO, Financial Stability Board, Basel Committee, APEC, European Union. 10
  6. 6. 27/11/2014 6 The International Valuation Standards - Objectives • Building Confidence and Trust: The IVSs require transparency in the set-up, execution and reporting of valuation assignments, with the objective of building trust among those who rely on valuations. • Narrowing Differences in Valuation: The IVSs provide guidance on matters that should be considered when valuing different types of asset for different purposes with the objective of providing greater consistency. 11 The IVSs - Overview • IVS Framework defines and describes concepts and principles applicable to most purposes for which valuation is required. • IVS General Standards set requirements for accepting, undertaking and reporting applicable to most types of valuation. • The IVSs include guidance on how these principles should be applied to different types of asset or for different valuation purposes. 12
  7. 7. 27/11/2014 7 The IVSs - Asset Types Covered • Business Interests • Intangibles • Plant and Equipment • Real Property • Financial Instruments 13 The IVSs - Valuation Purposes • Financial Reporting • Secured Lending • Recovery and Resolution (pending) 14
  8. 8. 27/11/2014 8 Current Standards Board projects • Liabilities • Derivatives - Exposure Draft for equity derivatives currently open for comment. • Credit and Debit Valuation Adjustments • Funding Valuation Adjustments • Valuations for Resolution and Recovery Biennial review of all IVSs in issue – exposure draft expected Q1 2015 15 IVSC Professional Board • International Professional Standards to be developed for: – Entry Requirements for Education Programs – Technical Competence – Professional Ethics and Attitudes – Practical Experience – Continuing Professional Development 16
  9. 9. 27/11/2014 9 IVSC Professional Board - IPSs • IPSs will set common benchmark for individual professional bodies in setting their own criteria for issuing their members with credentials and monitoring their conduct. • The IVSC intends to develop programme to monitor compliance with IPSs by member bodies, but cannot and will not be involved in credentialing or disciplining of individual valuers. 17 Questions? www.ivsc.org

×