International Valuation Standards
International valuation standards are developed by the IVSC after review of domestic standards for each country, recognition of the appraisal principles that are reflected in these standards, review of appraisal practices worldwide, and interaction with other standards bodies such as the International Accounting Standards Committee and the International Federation of Accountants. The committee holds dialogs with international organizations such as the World Bank and the Organization for Economic Co-operation and Development (OECD), regulatory organizations of the more developed countries, and many others involved with the use or provision of appraisal services throughout the world.
The eighth edition of the International Valuation Standards (2007) reflects several of the IVSC’s most important accomplishments:
- There is virtually unanimous agreement among the countries of the world as to valuation principles.
- Despite the revision of standards, valuation principles do not change from edition to edition because they are well established and marked-supported.
- Many international (and domestic) misunderstandings are fostered by imprecise or confusing language; valuation standards are instrumental in recognizing these problems and offer precise understandings within the standards and in supplemental commentaries.
The goals of the IVSC Standards Project, which are explained on the IVSC’s website (www.ivsc.org), include:
- To facilitate cross-border transactions and contribute to the viability of international property markets by promoting transparency in financial reporting as well as the reliability of valuation performed to secure loans and mortgages, for transactions involving transfers of ownership, and for settlements in litigation or tax matters.
- To serve as a professional benchmark, or beacon, for valuers around the world, thereby enabling them to respond to the demands of international property markets for reliable valuations and to meet the financial reporting requirements of the global business community.
- To provide standards of valuation and financial reporting that meet the needs of emerging and newly industrialized countries.
In 2007, the Board of Directors of the Appraisal Institute approved the inclusion of the International Valuation Standards and appropriate national Standards as part of the organization’s Standards of Professional Appraisal Practice so that Members may comply with:
- Uniform Standards of Professional Appraisal Practice and the Certification Standard of the Appraisal Institute, or
- International Valuation Standard, applicable national Standards, and the Certification Standard of the Appraisal Institute
The relevant set of standards that apply in a particular assignment depends on whether law, regulation, or agreement with the client requires compliance with USPAP, IVS, or other standards. Members in the United States who are licensed or certified by their state must comply with USPAP because their state board (i.e., law) requires compliance with USPAP. However, a Member may be in compliance with USPAP and IVS simultaneously.
Let us exceed your expectations with an appraisal of your project or business
If you have a need for an asset appraisal anywhere in the world, Global Valuation will gladly provide you with a proposal that includes a fee estimate and timeline projection. Just click the button below, complete and submit the form and we will respond!
