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International Standards

The International Valuation Standards (IVS) and the International Property Measurement Standards (IPMS) have been developed and published by international coalitions set up to promote a consistent global approach for the property industry.  The API is a member of both the International Valuation Standards Council (IVSC) and the International Property Measurements Standards Coalition (IPMSC). 

The API adopted the IVS word-for-word in 2007 and API Valuer Members have a mandatory requirement to comply with the IVS. 

The IPMS, whilst not mandatory for Members, is consistent competent professional practice for the principles and guidance contained with the IPMS to be followed by Members.

About the International Valuation Standards Council

The International Valuation Standards Council (IVSC) is an independent, not-for-profit organisation that produces and implements universally accepted standards for the valuation of assets across the world in the public interest. The IVSC has developed a set of International Valuation Standards (IVS) for many types of assets, including real estate, plant and equipment, intangible assets and businesses. International users and providers of valuation services recognise the need for a global approach to valuations and are demanding conformity with IVS. 

The Australian Property Institute became an inaugural member of the IVSC in 1981 and continues its membership today. The API adopted the IVS word-for-word in 2007. API Members have a mandatory compliance requirement in relation to IVS. 

In August 2019, the IVSC announced that the latest version of the IVS, which became ‘effective’ on 31 January 2020.

On 31 August 2021, the IVSC announced the release and publication of an updated version of the IVS, which will become effective on 31 January 2022.

The IVSC permit and encourage earlier adoption of the IVS. For more information, please visit the IVSC website.

IVS Updated effective 31 January 2022

On 31 August 2021 the International Valuation Standards Committee (IVSC) announced that the latest version of the International Valuation Standards (IVS), which will become effective on 31 January 2022, is available for download. 

The IVSC has provided Valuation Professional Organisations with a copy of the updated IVS as well as a red-line version showing changes between the 31 January 2020 version and the latest version. The API provides valuer member access to both these documents at the links below.  

Further information about the IVS including the IVSC’s FAQs about the latest IVS are available on the IVSC website here.

The IVSC announcement is contained below.

IVSC announcement

The latest version of the Standards brings greater depth and clarity to the IVS, as recommended by member organisations, including the major valuation and accounting firms and Valuation Professional Organisations. All the updates have been consulted on over the course of the last 18 months.

Key updates to IVS
Here are a few things you need to know about the latest version of IVS: 

  • Effective date: The latest IVS becomes effective from 31 January 2022. 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 230 Inventory‘ as part of the intangible asset standards. You can view the earlier consultation here. 
  • Technical revisions: Updates also include the technical revisions consulted on throughout 2020 and 2021. The archived consultation documents can be found here.
  • Introduction: The introduction has been revised to incorporate new ’core principles of valuation standard setting‘ and the ‘core principles of valuation‘, as set out in the recent IVS Additional Technical Revisions 2021 Exposure Draft. The core principles have been agreed in conjunction with the Advisory Forum Working Group and not only demonstrate the harmonisation already in existence but also clarify vital expectations for all standard setters. This change also reflects the IVSC’s ongoing efforts to align valuation standards.
  • Glossary: The IVS glossary has been updated to include new terms and to provide additional clarifications. This change also reflects the IVSC’s ongoing efforts to align valuation terminology and definitions.
  • IVS Framework: The sections on ‘compliance with standards’, ‘assets and liabilities, ‘valuer’ and ‘competence‘ have been revised to provide additional clarifications. 
  • IVS 104 Bases of Value: A new section on ‘allocation of value’ has been included within this chapter.
  • IVS 105 Valuation Approaches and Methods: The introduction has been revised to provide additional clarification that one or more valuation approaches may be used to arrive at the value reported within a basis of value.
  • IVS 200 Businesses and Business Interests: The introduction has been revised to provide further clarification on what constitutes a business and a business interest.
  • IVS 400 Real Property Interests: The introduction has been revised to provide additional clarification that this chapter includes the valuation of agriculture and land and to incorporate the valuation of unregistered and communal land. 

Why have these changes been made? The Standards Review Board expects to publish a ‘Basis of Conclusions‘ document, explaining the rationale for all updates to IVS, within the coming weeks. This will be available through the IVS Online portal and on the Members’ section of the IVSC website.  A digital copy will be sent out to all Member and Sponsor organisations.

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, which are available through the IVSC Members’ Portal. 

We hope you find the latest standards informative and helpful. If you have any feedback you would like to share, please do not hesitate to contact the IVSC via email: [email protected].

International Property Measurement Standards

The International Property Measurement Standards Coalition (IPMSC) was formed on 30 May 2013 after meeting at the World Bank in Washington DC and consists of a group of more than 80 professional and not-for-profit organisations from around the world. The Coalition aims to bring about the harmonisation of national property measurement standards through the creation and adoption of agreed international standards for the measurement of buildings. 

International Property Measurement Standards (IPMS) will enable different classes of buildings to be measured on a transparent basis, thus ensuring a consistent approach for transactions and valuations, creating a more transparent marketplace, greater public trust, stronger investor confidence, and increased market stability. 

More information about the IPMSC can be found on their website.