RICS ISSUES REVISED GLOBAL RED BOOK
In late 2019 RICS published a new edition of the RICS Valuation - Global Professional Standards, AKA the Red Book.
This follows a short consultation period on the proposed changes to the RICS content between 9 September and 11 October. The RICS Global Standards also include the International Valuation Standards, and the version of these issued in July 2019, but stated to be effective from the end of January 2020, become part of the RICS standards from that date.
In September we commented on the consultation draft. To accompany the new standards RICS has issued a Basis for Conclusions. A few of the suggestions we made for improving the consultation draft were accepted. However, the more significant suggestions, namely improving the guidance on material uncertainty disclosures in the light of the new FCA rules on illiquid assets held in open ended funds and guidance on the relevance of the new IVS on non-financial liabilities to the real estate sector are merely noted for future consideration.
We have prepared a Review of the new standards which includes a summary of changes together with our comments on the practical implications.
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