Members would be aware of the new IVS standards which are to become effective as of 1 July 2017.
These standards can be adopted now but will not become operative until the above date. These changes provide more of a broad scope regarding the implementation for Valuation standards in a global context.
The new 2017 IVS can be downloaded from the Property Institute of New Zealand (PINZ) website.
The main changes are noted below:
- IVS 101 Scope of Work
- “A written scope may not be necessary. However, since valuers are responsible for communicating the scope of work to their client a written scope of work should be prepared.”
- The Glossary and IVS Framework is now condensed over a few pages.
- IVS 102 Investigations and Compliance
- Was “Implementation” now referred to as “Investigations and Compliance.”
- IVS 103 Reporting
- Has removed restating the scope of works.
- IVS 104 Basis of Value
- New addition to the IVS
- Talks about the assumptions and defines “value”i.e. Market Value, Market Rent, Equitable Value (Was Fair Value), Investment Value/Worth, Synergistic Valueand Liquidation Value
- IVS 105 Valuation Approaches and Methods
- New addition to IVS, covering Market/Income Approach method
- IVS 300 Plant and Equipment
- Was IVS 220 in the 2013 version
- IVS 400 Real Property Interests
- Was IVS 230 in the 2013 version
- IVS 410 Development Property
- Was IVS 233 Investment property under construction in the 2013 version
- IVS 500 Financial Instruments
- Was IVS 250 in the 2013 version
- The following standards remain similar to the previous 2013 versions
- IVS 200 Business and Business Interests
- IVS 210 Intangible Assets
- IVS 300 and 310 have now been removed from the 2017 IVS.
In summary, the IVS 2017 is a summarised version in undertaking valuation assignments with recognised concepts and principles. This is to provide transparency and consistency for valuation assignments in a global context.
Further, the practice standards and guidance notes which are applicable to valuation assignments in New Zealand will provide more detail from a local perspective.
Patrick Foote ANZIV, SPINZ