IVSC Standards Updated from 31 January 2020

The International Valuation Standards Council (IVSC) has recently published a revision of its valuation standards which apply from 31 January 2020. As these standards apply in Australia (Adopted by API and RICS) Greg Rowe discusses how we have now reviewed the changes and are actively preparing for their application on 31 January 2020.

Notable among the changes are:-

  • New definitions of “Valuation” and “Value”;
  • New definitions of “Intended Use” and “Intended User”;
  • New requirements on valuation information reliance;
  • New requirements on client instructed valuation approaches where they deviate from IVSC approaches;
  • New requirements for data for DCF valuation approaches;
  • New requirements for Discount Rate derivation;
  • New definition of a Valuation Model;
  • New detailed requirements on Capital Structure Considerations apropos business valuations including valuation methods;
  • A new chapter on the valuation of non-financial liabilities which are liabilities requiring a noncash performance obligation;
  • New requirements for valuing development property for secured lending and other purposes.