The IVSC’s Tangible Assets Board has recently published a Perspectives Paper: Challenges to Market Value after receiving feedback that in some markets there is an increasing difference between Price and Value.   

Whilst quantifying this difference in valuation terms has commonly been acknowledged as difficult in undeveloped markets where there may be few (if any) comparables and non-transparent information, it has also become increasingly challenging in developed markets despite the abundance of information that exists in these ecosystems. 

The uncertainty created in markets due to the COVID-19 epidemic has resulted in challenges for Valuers undertaking valuations and these challenges are well understood.  There are a number of questions in relation to the application of ‘Market Value’ as a result. 

Another consideration for the IVSC Tangible Assets Board is that some organisations around the world are considering a transition away from Market Value because of the difficulties such a basis of value creates during volatile markets. 

The Perspectives Paper published by the IVSC’s Tangible Assets Board looks into these matters with the aim to

  1. initiate and foster debate on valuation topics as they relate to the International Valuation Standards (IVS);
  2. provide contextual information on the topic from the perspective of the standard setter; and
  3. support the valuation community in their application of IVS through guidance and case studies.

The IVSC Tangible Assets Board welcomes insight and feedback to the topics discussed in the paper in order to understand what issues (if any) Valuers, or the users of their services, have with the use and interpretation of Market Value. 

To access the IVSC paper click here.

Member Feedback

Members are encouraged to review the perspectives paper and provide a response directly to the IVSC by emailing The IVSC Tangible Assets Board at contact@ivsc.org.  Alternatively, the API will be making a submission to the IVSC on behalf of Members by the end of February 2021.  Should any Members wish to contribute to that submission please contact the standards team on standards@api.org.au.