The International Valuation Standards Council
(IVSC) has issued a new international valuation standard aimed at
increasing the confidence of users of valuation services.
The new International Valuation Standards
(IVS) will cover the valuation of a wide range of assets: financial
instruments, real property, intangible assets and business
interests.
The IVSC said capital markets need to have
confidence in valuations and following, “numerous inquests into the
2008 financial crisis, regulators and the G20 have acknowledged
that proper valuation standards and effective regulation are
necessary for improved financial stability.”
IVSC standards board chairman Steven Sherman said since valuation
is, “key to financial decision making, whether for investment or
for measuring performance throughout the financial system, an up to
date and robust set of standards is needed to help eliminate
avoidable risks.”
IVSC board of trustees chairman Michel Prada
said the financial crisis has provoked serious debate about the
role and reliability of valuations and their impact on financial
markets.
“The ambition of the IVSC is clear – to
provide standards and guidance that improve the quality and
reliability of valuations globally,” she said.
The new IVS will be effective from January
2012.
IVCS membership consists of several different
financial organisations including Deloitte, Ernst & Young, KPMG
and Grant Thornton.
