The International Valuation Standards Council and The Appraisal Foundation Collaborate to Bring Greater Consistency to Appraisal Standards
Together, Both Organizations are Taking Action to Harmonize Differences Between Respective Standards
London, United Kingdom and Washington DC, US – June 15, 2015 – The International Valuation Standards Council (IVSC), the global standard setter for valuation practice and the valuation profession, and The Appraisal Foundation (TAF), the United States’ foremost authority on the valuation profession, are strengthening their collaboration.
The two organizations are working to harmonize any remaining differences between the IVSC’s International Valuation Standards (IVSs) and the Foundation’s Uniform Standards of Professional Appraisal Practice (USPAP).
Representatives from the IVSC’s Standards Board and the Foundation’s Appraisal Standards Board recently met to establish joint objectives and a long-term plan to collaborate and execute upon the Memorandum of Understanding (MoU) signed in October 2014, which stated that they would harmonize any remaining differences between USPAP and the IVSs. In their three year plan, the IVSC and TAF have agreed to give priority to this harmonization.
This will be accomplished, in part, through a document that will act to bridge the two sets of standards. Appraisers using this “bridge document” will be able to develop appraisals that are compliant with both the IVSs and USPAP. The core principles of both the IVSs and USPAP, however, will remain intact.
Sir David Tweedie, Chairman of the IVSC Board of Trustees said:
“The MoU has reinvigorated our long-term relationship between the IVSC and TAF. We are now determined to capitalise on the wealth of expertise we have at our disposal in our common goal of establishing a globally accepted set of valuation standards. Bringing USPAP and the IVSs together is an extremely important step towards achieving this goal.”
Currently, no single set of global standards for estimating the value of assets has been comprehensively adopted across the world, meaning it can be potentially more difficult to accurately compare asset values when making investment decisions across borders.
Although many parts of the world have established successful valuation principles and standards, other regions are less developed in this respect, which can present issues of inconsistency to multi-national companies or investors.
Variations in global valuations can also result in many international businesses – such as banks and pension funds – finding it harder to fully understand the true value of their assets or underlying collateral across different countries and regions.
David S. Bunton, President of The Appraisal Foundation added, “We are delighted to move forward with the IVSC in an effort to converge our standards. Uniform valuation standards will have a transformative impact, providing the global business community with a firm understanding of the value of their assets, regardless of what country they are operating in.”
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Written by : The Appraisal Foundation
The Appraisal Foundation is dedicated to promoting professionalism and ensuring public trust in the valuation profession. This is accomplished through the promulgation of standards, appraiser qualifications, and guidance regarding valuation methods and techniques.
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In other words: Here comes more regulation, more work, more oversight, more scope creep and the pressure to be perfect, faster cheaper and glad that I’m getting near to retirement. When people tell me that they are interested in becoming an appraiser; I tell them to FLEE.
I too currently would not recommend real property appraisal as a job. When the profession recognizes and deals with the fact that being an economist requires a great deal of education and training to understand the nuances of decision making in real property markets and then importance of applying critical thinking regardless of the tools used to the data as it is being analyzed and when appraising becomes respected and well paid then I might change my mind.
The only currently excessive regulation that is ruiness and objectionable to me is that of Fannie Mae and her AMC spawn. What a mess she and they are, but she does seem to generate lending activity!!!!
Great! We are a trade sinking in the quick sands of babel of our own making. It is well past the time that more education and standardization be accomplished. Regardless of the AI’s efforts to keep it confusing for everyone.
How about the IVSC just adopts USPAP and we can be done with “Harmonizing”. I sure as hell am not interested in adopting International standards for anything, Sincerely, how on earth with the current UAD can we achieve “Greater Consistency to Appraisal Standards”? This is just about a–holes in DC trying to justify their existence.