International Valuation Standards (IVS) 2017

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 Value and 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

Registered Valuer