Valuations, whether they be of businesses, companies, shareholdings, intangible assets (or any other type of asset) are relied upon and used by a range of stakeholders to make decisions, to ensure compliance and to support lending and transaction activities.
This reliance by third parties on valuations means that it is important that all valuations are completed using recognised and accepted concepts and principles.
The International Valuation Standards are among the most well known and trusted set of standards for valuers internationally. Herein, we provide an overview of what the International Valuation Standards are and why their use is important.
What are the International Valuation Standards?
The International Valuation Standards are issued by the International Valuation Standards Council, an independent, not-for-profit organisation established to advance quality in the valuation profession.
The standards set out a number of matters of importance to the conduct of valuation matters, including:
- Principles for valuers regarding matters such as objectivity, judgement and competence;
- Requirements for the conduct of valuation assignments including what matters should be addressed in terms of engagement, the methods which should be considered and applied and reporting criteria, and;
- Guidance specific to particular asset classes.
Why are the International Valuation Standards Important?
Valuations are relied upon by a range of stakeholders. As part of this, it is vital that valuations are conducted in a manner which is consistent and transparent across the valuation profession. The consistency and transparency of the International Valuation Standards are the leading benefits of the adoption of these standards by valuers.
The consistency and transparency advocated by the International Valuation Standards ensures valuations completed consistent with the International Valuation Standards and by competent professional valuers are more likely to be reliable and will be more easily interpreted by end users – whomever they are.
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Groves & Partners are expert business transaction advisors and valuers. Most of our valuations are conducted in a manner compliant with the International Valuation Standards, meaning that they are reliable, clear and transparent.
If you believe you may require a valuation, whether it be of a business, a company, a shareholding or intangible assets, and would like to know more about how we can work with you, contact us on 1300 892 717 (+61 2 7208 7970 or email firstname.lastname@example.org.