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    IVSC eNews
July/August 2019
In this edition:
  • International Valuation Standards (IVS) updated
  • Interview with Savills' Regional MD for Asia, Martin Fidden, on their expansion into the business valuation sector
  • Download the IVSC's 2018-19 Annual Report
  • Update from the Chair of the IVSC Advisory Forum Working Group, John Martin
  • New and proposed members
  • Building a global valuation profession across Latin America
  • Dates for your diary
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International Valuation Standards (IVS) updated!

The latest edition of the International Valuation Standards (IVS) is now available to download online. The latest version updates IVS 2017 in a number of ways and will become 'effective' in six months' time, from 31 January 2020. 

IVSC member and sponsor organisations will shortly receive a copy of the new standards. 

Here are a few things you need to know about the latest version of IVS:
  • Title: The year of publication is no longer included in the title of the standards. Instead, the 'effective date' (the date at which the standards come into effect) will be clearly set out on the cover.
  • Effective date: The latest IVS becomes effective from January 2020. However, the IVSC encourages early adoption from the date of publication. Valuers will need to make clear which edition of the IVS they are using when preparing a valuation report.
  • New chapter: The updated IVS includes a new chapter, 'IVS 220 Non-Financial Liabilities' as part of the intangible asset standards.
  • Technical revisions: Updates also include the technical revisions consulted on throughout 2018 and 2019.
  • Glossary: The IVS glossary has been updated to include new terms and to provide additional clarifications. These changes also reflect the IVSC's ongoing efforts to align valuation standards, terminology and definitions.
  • Notable updates: Other key updates have been introduced in relation to 'development property' (IVS 410), 'limitations' (IVS 102), and 'valuation models' (IVS 105).
  • Access the latest IVS: The latest version of IVS is available to download from IVS Online.
  • Changes from IVS 2017: A 'red-line' version of the updated IVS is also available for download, providing clarity on changes from IVS 2017.
  • Why the changes? The Standards Review Board expects to publish a 'Basis of Conclusions' document, explaining the rationale for all updates to IVS, within the coming weeks.
  • Translations: IVS is published by the IVSC in English. Translations of IVS are carried out by organisations including Valuation Professional Organisations and regulatory authorities. The IVSC will be working with these entities to support updates to existing translations. 

An FAQ document has been published on the IVSC website to support the adoption of the latest version of IVS.


 
Savills sees opportunities to expand their valuation offering in Asia

 
Later this year, Savills will sponsor the IVSC AGM and IVAS/IVSC Business Valuation Conference in Singapore. This coincides with their move into the business valuation sector having recently appointed a new Asia-based BV team, headed by Eric Teo. 

We spoke to Savills' Regional Managing Director for Professional Services, Martin Fidden, to find out more about their expansion into business valuation, and to understand how they are balancing the growth opportunities in this sector with the need to bring in credible business valuation-focused expertise. 


 
Download the IVSC's 2018-19 Annual Report

The IVSC's Annual Report 2018-19 is now available to download from the IVSC website. In the latest report, IVSC Chairman, Sir David Tweedie, Chief Executive, Nick Talbot, and chairs of the IVSC's standards boards share updates on progress over the year, including details of where IVS has been adopted, new member organisations, and plans for the year ahead.
 


 

Update from the Chair of the IVSC Advisory Forum Working Group (AFWG), John Martin

The Advisory Forum Working Group (AFWG) is the leadership of the Advisory Forum which is formed of all IVSC members. The AFWG provides input and advice to the IVSC on behalf of members, shares best practice, and facilitates dialogue across the IVSC's member network.
 
Adoption 2020

At our meeting in London last month, the AFWG continued to focus on the IVS Adoption 2020 project, which the group considers to be essential if the valuation profession is to achieve the recognition and respect it deserves.

While it remains the case today that there is significant divergence in the levels of valuation expertise, professional and regulatory infrastructure around the world, there is a clear and growing sentiment advocating for one set of high-level, internationally agreed standards to facilitate and empower the valuation profession. Achieving this, however, means helping Valuation Professional Organisations (VPOs) to understand the process and benefits of adopting internationally developed principles. 
 
To this end, the AFWG recently started to publish case studies demonstrating how VPOs around the world are adopting IVS. the first of these, published on the Members' Portal of the IVSC website, are provided by VPOs including the Australian Property Institute (API), Hong Kong Institute of Surveyors (HKIS), Royal Institution of Chartered Surveyors (RICS) and the Saudi Valuation Authority (Taqeem). Others will follow from different geographies, helping to build a picture of how and why IVS is becoming integrated within the professional guidance issued throughout the world.

To progress the Adoption 2020 project, the AFWG is preparing a position paper which will outline an Adoption Guide with some common steps and approaches that work, building on, and incorporating the case studies. This document will outline those steps, approaches and potential pitfalls, which we hope will help technical standards writers in adopting countries.

The paper will be circulated for comments in mid-August and there will be a presentation to the Advisory Forum (including the representatives of all IVSC member organisations) at the October AGM in Singapore.

To achieve global Adoption of IVS by the end of 2020 all VPO members of IVSC have to be fully committed to the adoption of a single set of high quality IVS, and start the process  of incorporating those standards now. The embedding of IVS within existing national standards will underpin the recognition of valuation as a global profession and is advantageous to all stakeholders, from valuers through to the clients they serve.
 
Standards harmonisation 

In conjunction with the adoption position paper, the technical writers of IVS, USPAP and CUSPAP continue to work towards a common language for real estate valuation that will make adoption of a single set of standards more straight forward. The IVSC continues to reach out to all valuation standard setters throughout the world in an effort to make this a collaborative endeavour, so that the valuation profession can collectively develop and agree the global principles needed to assert its credibility.
 
New members

The AFWG welcomed new members from Hypzert, Germany (Reiner Lux) and TAQEEM, Saudi Arabia (Muath Alkhalaf), adding further geographical coverage for the RE and BV disciplines.
 
AGM

There will be 6 presentations and workshops as part of the AFWG programme at the AGM, including sessions focused on: IVS adoption case studies from around the world; AVMs and their potential impact on the valuation profession; and creating the necessary infrastructure to grow the business valuation profession. In addition to the AFWG-led sessions AGM delegates will be able to join the IVSC's technical standards boards for their meetings, and network with valuation leaders from more than 40 countries.

I'm looking forward to seeing many of you in Singapore!

John
 
New and proposed members
The following applications were received and approved by the Membership Committee:  If you have any comments regarding proposed members, please do so by emailing us within 3 weeks via [email protected]
 
Building a global valuation profession across Latin America
 

A spotlight on Latin America
by Mynarski International Director, João Carlos Papaleo Mynarski
 
Latin America is a hugely diverse continent, characterised by developed and underdeveloped regions.  Generally speaking, the developed regions are fully integrated into the international market and their professionals, including accountants, auditors and appraisers, are aware of and disseminate international standards such as IFRS for financial reporting and IVS for appraisals.
 
By contrast, in the underdeveloped regions, there has historically been a low uptake in professional qualifications.  The professional infrastructure is limited and practical awareness of international standards is lacking.  It is perhaps fair to say that this has had a fundamental influence on the investability of some regions, certainly when it comes to foreign investment into Latin America.
 
Despite this being the case, there is a growing appetite to see standards of professionalism emerge across the whole region as a means of establishing greater integration with the international marketplace.  The opportunity to foster a strong and credible valuation profession in the region is real and compelling.
 
Latin America as a region has moved through a number of development cycles that have generated considerable profits for local companies in recent years.  In tandem, domiciled businesses, through these increased profits, have started to expand into new markets, both within and outside Latin America.
 
At the same time, the infrastructure and consumption demands of the 700+ million people that call Latin America their home, have, unsurprisingly, created huge opportunities for international companies to invest in the continent.  This has been quite pronounced over the last two decades, with significant foreign exposure to commodities industries and agriculture.  



 
Singapore AGM and Business Valuation Conference - registration now open


This year the IVSC will hold its AGM (Monday 7 – Wednesday 9 October) in one of the world's most dynamic and international markets for business and finance, Singapore.
 

Hosted this year by the Singapore Accountancy Commission (SAC), under the Ministry for Finance for Singapore, the AGM is the only gathering of its kind to assemble senior valuation leaders from around the world, in all fields and from all sides of the profession, including service providers, institutional investors, banks, regulators, governments and end users. Last year's AGM in Dubai was attended by delegates from 62 countries across six continents.
 

Over three days, all of the IVSC’s boards will convene, as well as the Advisory Forum which assembles representatives from the IVSC’s member network, including leaders from 60+ Valuation Professional Organisations from around the world. Networking events including the Gala Dinner, and presentations from prominent valuation and business leaders will also take place.
 

Registration for the AGM is now open and representatives of sponsor organisations can obtain a promotional code by emailing: [email protected] 



IVAS/IVSC International business valuation conference

In tandem with this year's AGM, the IVSC and the Institute of Valuers and Appraisers of Singapore (IVAS) is pleased to announce their annual International Business Valuation Conference on Thursday 10 and Friday 11 October at the prestigious Marina Bay Sands Hotel. The conference, which takes place each year in Singapore, has become established as one of Asia’s premier valuation conventions, bringing together more than 300 valuation, business and investment leaders from across the region to discuss key trends in valuation and to envision and define the future of the profession.
 

More information including the latest programme is available here: IVAS/IVSC Business Valuation Conference 2019
 

Speakers at this year’s conference include Indranee Rajah, Second Minister for Finance of Singapore, as well as prominent business and valuation leaders from around the world.
 

**IVSC AGM delegates can receive up to two nights free hotel accommodation with the purchase of a conference ticket. To access this benefit, please register first for the AGM before emailing: [email protected] for a registration link**.

Find out about sponsoring the IVSC AGM and Business Valuation Conference
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Dates for your diary
Find out more about the major valuation events and conferences taking place around the world and register by clicking the links.
 
25 August: Joint ASA 2019 Conference, New York
06 September: ANEVAR International Valuation Conference, Bucharest
09-11 September: ICVPME 11th Annual Conference 2019, Auckland, NZ
07-09 October: IVSC AGM, Singapore
10-11 October: IVAS/IVSC International Business Valuation Conference, Singapore
12-14 October: CAANZ - Business Valuation/Forensic Accounting conference, Melbourne
22 October: Malaysian Institute of Accounts Annual Conference 2019, KL
23-25 October: 10th WAVO Congress 2019, Gold Coast
24-27 November: IREAA Annual Conference 2019, Eliat


Does your organisation have a valuation event coming up? To list it here please email details to [email protected] 
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