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International Valuation Standards Updated for 2022

Aug 05, 2021


The International Valuation Standards Council (IVSC) has released the latest edition of the International Valuation Standards (IVS). The updates become effective January 31, 2022.

The latest version of the Standards brings greater depth and clarity to the IVS, as recommended by member organizations, including the major valuation and accounting firms and Valuation Professional Organizations. 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 harmonization 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.

For complete details about the update, visit IVSC online.