ANZ Valuation Property Standards

ANZ Valuation Property Standards

Click here to read about changes to the International Valuation Standards.

The Australian Property Institute and the Property Institute of New Zealand have both enjoyed a long and proud history representing property professionals in Australia and New Zealand.

The Australian Property Institute is the successor to the Commonwealth Institute of Valuers formed in 1926. The Property Institute of New Zealand was formerly the New Zealand Institute of Valuers established in 1942. The two Institutes today represent the interests of more than 11,000 property specialists throughout Australia and New Zealand.

The primary role of the two organisations is to set and maintain high standards of professional practice, education, ethics and discipline.

Members include experts in property such as valuers, property advisors, property managers, property analysts and facilitators. Membership of either organisation has become synonymous with qualities of integrity, experience, professionalism and specialist expertise.

The two Institutes are committed to maintaining a strong professional base to ensure the future of the property professions through education and broadening of the expertise and knowledge of the Membership.

The clients of members are also considered to be clients of the Institute. Both Institutes are interested in assisting their members to provide high quality professional services that are relevant to the current and changing needs of clients and the community at large.

Both Institutes recognise their roles as guardians of the status and standing of the property profession and of their duty to protect and further the public interest.

The Australian Property Institute and the Property Institute of New Zealand acknowledge that the privileges accorded to professional persons by the community are accompanied by responsibilities to client and community, which cannot be waived.

For property professionals in both Australia and New Zealand there has been an increasing shift towards International Valuation Standards (IVS). International Financial Reporting Standards are now formulated in full consultation with representatives of the International Valuation Standards Council and there is now the practical requirement to be aware of IVS.

The third joint publication of the Australia and New Zealand Valuation and Property Standards (2008 version – downloaded here) represented a further stage toward the harmonisation of valuation and real property standards within Australia and New Zealand and reflected the continued move towards IVS. The publication included all IVSC Applications, Standards and Guidance Notes, which had been drawn from IVS 2007. Interposed within the IVSC material was additional information to assist members in meeting local valuation and real property reporting requirements.

However, in 2011 The International Valuation Standards Council (IVSC) 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.

The principal changes between IVS 2007 and IVS 2011 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.

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.

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.

PropertyPROResidential 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.
 

To obtain a copy of the ANZVPS, please download from the below links. 

RESOURCES

Download the complete ANZVPS- Note the new IVSC located here

View recent Guidance Notes