IVSC

International Valuation Standards Council

The International Valuation Standards Council (IVSC) publications are regularly reviewed to maintain relevancy, consistency, clarity and application.

The International Valuation Standards Council (IVSC) has announced that:

• The existing IVSC Standards (Eighth Edition published 2007) will be withdrawn on 31 December 2011.
• New standards (IVS 2011) have been released and will become effective from 1 January 2012.

 Whilst the timing of the issue of the new standards has not been ideal, having been involved in the preparation of the new standards via formal submissions, we endorse the direction the IVSC is taking.

The principal changes between IVS 2007 and IVS 2011 are can be downloaded here.

Because of the dynamic nature of the valuation profession, Standards often have a limited shelf life. The Australian Property Institute (API) through its various publications brings amendments to the attention of its members and the most current version of IVS is available on the IVSC web page www.ivsc.org.  This document may be purchased as a hard copy publication direct from the IVSC or individual standards viewed / downloaded.  It should also be noted that the IVSC is looking to introduce a subscription service mid 2012 by which the Standards and Technical Information Papers will be available electronically.

In developing IVS 2011 the IVSC believed there was a need to considerably simplify the standards to improve their accessibility. It also decided that:

• There was a need for the standards to address the valuation of financial instruments;
• That the standards should not be presented as a rule book for valuers but a set of principles for good valuation practice that would be equally accessible and useful to valuation users and others interested in valuation.

The new Standards focus on the required principles illustrated as necessary with examples in order to enable them to be applied as widely as possible.

International Valuation Standards 2011 - Contents
IVS 2011 consists of the following:

• IVS Definitions
• IVS Framework
• General Standards
• Asset Standards
• Valuation Applications

Technical Information Papers
The IVSC, through its Boards, is in the process of developing Technical Information Papers in order to provide guidance on best practice to support the application of the International Valuation Standards.

Other IVSC Activities
The IVSC Workplan can be viewed at www.ivsc.org and includes the following:

• Model Code of Conduct
• Professional Valuer
• Glossary of Terms
• Technical Information Papers

As a result of the issuing of IVS 2011, effective from 1 January 2012, the API National Council has withdrawn all reference to IVS 2007 with effect from 31 December 2011.

Professional Practice, effective from 1 January 2012 will therefore only incorporate the Standards and Guidance Notes developed for API & PINZ.

Professional Practice is available free of charge on the API National web-site (www.api.org.au).

Whilst the Institute has adopted and endorsed IVS 2011 effective from 1 January 2012, it has not been incorporated into Professional Practice as at this stage.

It is the intent that the API in 2012 will:

• explore with IVSC options for publication of IVS 2011
• set up a project to determine the future mode of delivery of Professional Practice (e.g. hard copy, website, pdf files, individual documents, etc.)
• embark on a review process of IVS 2007 to determine what content from those papers that has not been brought forward to any other document, needs to be captured in Professional Practice.

From 1 January 2012 the Australian and New Zealand Valuation and Property Standards manual (Professional Practice) will contain the following groupings of like elements.

The effective date of the above documents continues to be 1 August 2008 with the following exceptions:

Code of Professional Conduct

Topic 2.1

This document replaced API’s previous Code of Ethics and Rules of Conduct.
The effective date of this document is 1 August 2011.

ANZVGN 11 Valuation of Self Storage Facilities

Topic 8.11       

This was a new Guidance Note issued in 2011.
The effective date of this document is 1 January 2011.

ANZVGN 12 Market Value of Property, Plant and Equipment as part of a Going Concern Business

Topic 8.12

This was a new Guidance Note issued in 2011.
The effective date of this document is 1 August 2011.

ANZVGN 13 Valuations for Insurance Purposes

Topic 8.13       

This Guidance Note replaces AVGN 2 Valuations for Insurance Purposes and NZVGN 2 Insurance Valuation Reports.
The effective date of this document is 1 October 2011.

PropertyPRO Residential Valuation and Security Assessment Pro-forma Supporting Memorandum

Topic 16.1       

This document replaces the existing Supporting Memorandum and is effective from 1 March 2012 with earlier adoption being permitted.

As stated above, all the documents will be reviewed in 2012 to consider the implications of the withdrawal of IVS 2007, as well as taking into account any other required amendments.

In the interim if you have any queries please do not hesitate to contact Tony McNamara on email tmcnamara@api.org.au.

Philip Western
National President