International Valuation Standards Council

The International Valuation Standards Council (IVSC) is an independent, not-for-profit standards organization focused on improving the consistency, transparency and credibility of valuation practice worldwide. Its operational headquarters are in London, although the organization is incorporated in the United States. Rather than providing valuation services as a commercial firm, the IVSC develops standards and guidance intended for professionals who value businesses, real property, financial instruments, intangible assets, plant and equipment, development property and other assets and liabilities. The organization traces its origins to the International Assets Valuation Standards Committee, established in 1981 by professional institutes seeking greater consistency in valuation across national borders. The body adopted the name International Valuation Standards Committee in 1994 as its membership and technical scope expanded. In the late 1990s, it increasingly incorporated organizations concerned with assets beyond real estate. A major restructuring in 2008 produced the present International Valuation Standards Council structure, with separate governance and technical boards supporting the development and maintenance of its standards. The IVSC's central publication is the International Valuation Standards (IVS). These standards establish requirements and principles for undertaking and reporting valuations, while also providing technical material for different asset classes. The framework addresses matters such as objectivity, competence, professional judgment, compliance, the scope of work, investigations, reporting, bases of value, and valuation approaches and methods. General Standards apply across assignments, while Asset Standards address business and business interests, intangible assets, plant and equipment, real property interests, development property and financial instruments. IVS development follows a consultation-based process. The IVSC's technical boards issue discussion papers and exposure drafts, invite comments from stakeholders and use that input in maintaining or revising the standards. The organization works with valuation professional organizations, institutional and corporate members, governments, regulators, market participants, academic bodies and other international organizations. Its stated objectives include supporting adoption of high-quality international standards, encouraging collaboration among member organizations, engaging with financial-market authorities and representing the valuation profession internationally. The IVSC's members include organizations that accredit or regulate individual valuers working across multiple disciplines. By 2022, its membership exceeded 180 organizations internationally. The council has also developed relationships with financial-market and intergovernmental bodies. It is recognized by the United Nations Department of Economic and Social Affairs, and in 2022 it announced a cooperation agreement with the International Organization of Securities Commissions concerning international valuation standards and professional practice. The organization remains active as a standards setter and convening body. The IVS 2022 edition was published in January 2024 and was scheduled to take effect in January 2025. The standards are intended to increase user confidence in valuation work by promoting common concepts, transparent processes and comparable reporting, while allowing technical boards to continue updating the framework as markets, regulation and valuation methods evolve.

The IVSC emerged from efforts by valuation institutes to create greater consistency in professional practice across national borders. Its predecessor, the International Assets Valuation Standards Committee, was formed in 1981 by professional bodies whose work was concentrated mainly on real-property valuation. At that time, valuation rules and conventions varied substantially between jurisdictions, creating difficulties for investors, lenders, regulators and other users comparing assets and financial information internationally. In 1994, the organization changed its name to the International Valuation Standards Committee. The revised identity reflected a broader mission and the development of international standards intended to support more consistent valuation work. During the late 1990s, the organization expanded beyond its original real-estate emphasis and began to include member organizations concerned with other asset classes, including businesses, financial instruments, intangible assets and equipment. A substantial organizational restructuring took place in 2008, after which the body became the International Valuation Standards Council. The new structure separated strategic governance from technical standard setting. A board of trustees became responsible for strategic direction, organizational funding and appointment of the technical and membership-related boards. Independent technical boards were given responsibility for developing and maintaining the International Valuation Standards, supported by consultation with members and wider stakeholders. The council's standards-development process is designed to combine technical expertise with public consultation. Discussion papers and exposure drafts are issued so that professional organizations, valuation users, preparers, regulators, governments, academics and other interested parties can comment before revisions are finalized. This process supports the IVSC's objective of producing standards that can be applied across jurisdictions while remaining responsive to differences in markets, regulation and asset characteristics. The International Valuation Standards developed by the council contain mandatory requirements for assignments performed in compliance with IVS, together with principles and explanatory material concerning professional judgment. The framework includes a glossary and general principles dealing with objectivity, competence, compliance, the valuer's role and acceptable departures. General Standards cover the scope of work, investigations and compliance, reporting, bases of value, and valuation approaches and methods. Asset Standards add requirements for business and business interests, intangible assets, plant and equipment, real property interests, development property and financial instruments. The IVSC operates as an international network rather than as a national regulator. Its members include organizations that accredit, represent or regulate individual valuers, as well as institutional, corporate and academic participants. The council also cooperates with securities regulators and other international bodies. Its recognition by the United Nations Department of Economic and Social Affairs and its 2022 cooperation agreement with IOSCO reflect the relevance of valuation quality to financial reporting, investment, lending and capital-market confidence. By 2022, the IVSC had more than 180 member organizations worldwide. The council continues to review the IVS and may introduce new standards or amendments as valuation practice changes. The IVS 2022 edition was published in January 2024 and was intended to take effect in January 2025, demonstrating the organization's continuing role as a global reference point for valuation methodology, ethics and reporting.

• 2024

  IVS 2022 edition is published

  [1]International Valuation Standards Councilen.wikipedia.org

  The latest identified edition of the International Valuation Standards is published in January 2024, with an intended effective date of January 2025.

• 2022

  Membership surpasses 180 organizations

  [1]International Valuation Standards Councilen.wikipedia.org

  The council's international membership includes professional, institutional, corporate and academic organizations across valuation-related fields.

• 2022

  IVSC and IOSCO establish cooperation

  [1]International Valuation Standards Councilen.wikipedia.org

  The two organizations announce cooperation concerning international valuation standards and professionalism, particularly in the context of financial markets.

• 2008

  Restructuring creates the International Valuation Standards Council

  [1]International Valuation Standards Councilen.wikipedia.org

  A major restructuring establishes the present council model, including trustee governance and independent technical boards responsible for standards development.

• 1994

  Organization becomes the International Valuation Standards Committee

  [1]International Valuation Standards Councilen.wikipedia.org

  The organization adopts a new name as its scope and membership begin to extend beyond its original real-property focus.

• 1981

  International Assets Valuation Standards Committee is formed

  [1]International Valuation Standards Councilen.wikipedia.org

  Professional institutes establish the predecessor organization to promote consistent valuation standards across national borders, initially with a strong focus on real property.

Global professional standards setter and international voice for the valuation profession

• Professional standards

  International Valuation Standards

  The IVS is the council's principal standards framework for valuation assignments. It sets requirements for the conduct and reporting of valuations and provides principles, definitions and technical guidance intended to improve consistency and user confidence across jurisdictions. The framework applies to a broad range of assets and liabilities and is organized into a general framework, General Standards and Asset Standards.

• Technical reference

  IVS Framework and Glossary

  The framework serves as a preamble to the standards and addresses compliance, assets and liabilities, the valuer, objectivity, competence and departures. The accompanying glossary defines important IVS terms, including client, jurisdiction, purpose of valuation, valuer, valuation reviewer, materiality-related concepts and other terms used in assignments.

• Valuation methodology

  General Standards

  The General Standards apply across valuation assignments regardless of asset type. They address the scope of work, investigations and compliance, reporting, bases of value, and valuation approaches and methods. The standards are intended to establish a common process while leaving appropriate room for professional judgment where market and assignment circumstances differ.

• Asset-specific standards

  Asset Standards

  The Asset Standards supplement the General Standards with requirements and technical considerations for specific asset classes. Identified standards cover business and business interests, intangible assets, plant and equipment, real property interests, development property and financial instruments.

• 2024

  Publish the IVS 2022 editionGeneration change

  Background

  The IVSC continuously reviews its standards to reflect changes in valuation practice, market conditions and stakeholder needs.

  Action taken

  The council published the IVS 2022 edition in January 2024 and specified January 2025 as its effective date.

  Aftermath

  The edition became the latest identified version of the council's international valuation framework and provided the basis for subsequent adoption and implementation work.

  Source

• 2022

  Cooperate with IOSCO on valuation standards and professionalismOther

  Background

  Valuation quality is relevant to financial-market confidence, reporting and regulatory oversight, creating a need for closer cooperation between the international valuation standards setter and securities regulators.

  Action taken

  The IVSC and IOSCO announced a cooperation agreement focused on enhancing international valuation standards and professionalism.

  Aftermath

  The agreement strengthened formal engagement between the valuation profession and an international securities-regulatory body.

  Source

• 2008

  Restructure the organization as the International Valuation Standards CouncilStrategy

  Background

  The predecessor committee had expanded from a primarily real-property orientation toward a broader international valuation mission covering multiple asset and liability categories.

  Action taken

  The organization undertook a restructuring and adopted the International Valuation Standards Council name, with trustee governance and independent technical boards.

  Aftermath

  The new model supported broader membership, a more formal standards-development process and continuing work across business, real estate, intangible, equipment and financial- instrument valuation.

  Source

1. 1International Valuation Standards Councilen.wikipedia.org
2. 2International Valuation Standards Council official websiteivsc.org