The International Valuation Standards (IVS) have been updated. IVS serve as the key guide for valuation professionals globally and will underpin consistency, transparency and confidence in valuations which are key to investment decisions, financial reporting and financial market stability.

The updated standards will become effective from 31 January, 2022, with early adoption encouraged.

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

• Effective date: The latest IVS becomes effective from 31st 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.
• Technical revisions: Updates also include the technical revisions consulted on throughout 2020 and 2021.
• Introduction: the introduction has been revised to incorporate the core principles of valuation standard setting and the core principles of valuation. 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 slightly revised to provide additional clarifications.
• IVS 104: a new section on “allocation of value” has been included within this chapter.
• IVS 105: the introduction has been revised to provide additional clarification that one or valuation approach may be used to arrive at the value reported within a basis of value.
• IVS 200: the introduction has been revised to provide further clarification on what constitutes a business and a business interest.
• IVS 400: 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.