The International Valuation Standards (IVS) and the International Property Measurement Standards (IPMS) have been developed and published by international coalitions setup 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, it 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. Early adoption of the IVS was encouraged by the IVSC.
The IVSC announcement noted a number of key points about the latest/updated version of IVS:
- Title: The year of publication is no longer included in the title of the standards. Instead, the ‘effective date‘ (the date at which the standards come into effect) will be clearly set out on the cover.
- Effective date: The latest IVS becomes effective from January 2020. 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 220 Non-Financial Liabilities‘ as part of the intangible asset standards.
- Technical revisions: Updates also include the technical revisions consulted on throughout 2018 and 2019.
- Glossary: The IVS glossary has been updated to include new terms and to provide additional clarifications. These changes also reflect the IVSC’s ongoing efforts to align valuation standards, terminology and definitions.
- Notable updates: Other key updates have been introduced in relation to ‘development property’ (IVS 410), ‘limitations’ (IVS 102), and ‘valuation models’ (IVS 105).
- Why the changes? The Standards Review Board expects to publish a ‘Basis of Conclusions’ document, explaining the rationale for all updates to IVS, within the coming weeks.
- 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.
For more information in relation to the IVSC, please visit their website.
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.