USPAP and IVS

Just how different are they?

 

The International Valuation Standards (IVSs) and the Uniform Standards of Professional Appraisal Practice (USPAP) are probably the two most widely used and known sets of valuation standards in the world.  USPAP is prevalent in the USA, where its use is required by law for many purposes in the real estate sector.  The IVSs are more widely used outside the USA, either alone or in conjunction with national standards.

 

However, because the two present their rules (USPAP)  and requirements (IVSs) in different ways it can be easy to assume that the two are as different as chalk and cheese, which then leads to the further assumption that valuations prepared and reported under one must be different from those prepared under the other. This draws adverse comments from valuation users and regulators in the financial sector.

 

In fact there has been considerable interaction between the IVSC and the Appraisal Foundation for a number of years and once the different presentations, and the reasons for them, are understood, there are more similartities than differences.

 

We have prepared a table that compares the reporting requirements of the two standards side by side.  It can quickly be seen that there very few differences of substance. Of course the report contents are only part of the story but once you have found your way around each document there are actually few differences in any the mandatory requirements, and most of those that do exist are because of the differing scope of national and international standards.

 

Access the Comparison Table

 

For more on this topic and past and current efforts to converge the IVSs and USPAP, see Chris Thorne's blog article, "A Distinction without a Difference"