IVSC Exposure Drafts 2016
The IVSC has had a busy year and has so far released three sets of exposure drafts.
International Professional Standards
The first drafts released were for a brand new set of proposed International Professional Standards (IPSs), which are intended to provide consistent competency benchmarks for professional valuation organisations in areas such as education, training and ethical behaviour. The objective is to raise the profile and status of the profession globally, and protect the public interest by making it easier for those who rely on valuations for investment and other decisions to identify those qualified to provide advice. The draft IPSs are available here.
International Valuation Standards
The first set of drafts was released in early April. Although this was only of four sections of the standards they heralded significant changes to the organisation and status of the whole suite. The proposals include:
A change in the status of material currently designated as guidance to make it mandatory.
New standards to make the use of specified bases and approaches mandatory.
Removing the current standards that include guidance on valuations for financial reporting and of real property for secured lending.
Removing the Framework which contains explanation of common valuation concepts and principles.
The six drafts released at the beginning of June included the following proposals:
Turning existing guidance on the application of the IVSs to different types of asset into mandatory requirements.
Withdrawing previously approved updates dealing with practical issues encountered in valuing real property held for investment or development.
Withdrawing without comment or consultation recently published guidance on Valuation Uncertainty and Credit Valuation Adjustments.
All the drafts of the proposed new IVSs are available here.
What do we think?
We have submitted comment letters on each of the drafts which can be viewed via the links in the adjacent panel.
Exposure Drafts of changes to IVS Part 1
Closing Date for Comments 7 July 2016
Exposure Drafts of changes to IVS Part 2
Closing Date for Comments 31 August 2016