IVSC Publishes New Consultation for Setting Future Agenda with Regards to the Valuation Standards
In January of this year, the IVSC published a set of valuation standards for the valuation profession in the form of IVS 2017. After publishing IVS 2017, the organization is now looking ahead and therefore has launched a consultation in order to get feedback with regards to making improvements to valuation topics that are currently on its agenda such as discount rates, non-financial liabilities, extractive industries, early stage valuation, inventory and biological assets and also on topics that could be added to the agenda in the near future.
In addition to the valuation topics mentioned above, the IVSC also plans to make targeted improvements to several areas of IVS 2017 which includes improvements to control premium and discount for lack of control, development value and capital structure considerations.
The IVSC also revealed that it will publish these types of consultations every year in order to make the process of developing new standards and making changes within the existing standards, more transparent and consultative.
The IVSC has already identified a number of topics against which they would like to achieve some medium to long term goals but at the moment they are not priorities. Although, these topics can become part of the organization’s future projects. These include specialised public service assets, automated valuation models and data analytics, commercial lease transactions, valuation of personal property including art and antiques, price vs value, recovery and resolution, valuation in markets susceptible to change, alternative financing arrangements and distressed situations.
According to CEO of IVSC, Nick Talbot, the latest consultation released by the IVSC reflects the organization’s commitment towards developing high quality valuation standards and maintenance of high quality valuation standards continuing commitment to continue to develop high quality international valuation standards which underlies transparency and consistency in valuations all around the world.
The Valuations and its processes are very important to the global economy and these are also relied upon in financial and other markets. It is very important that these valuation standards evolve and develop so that they are fit to be used all around the world.
The consultation will be open for 90 days, ending August 15, 2017.