Reflections on the IVSC AGM 2019 & International Business Valuation Conference, Singapore

SINGAPORE – The American Society of Appraisers (ASA) was among the many organizations that participated in the International Valuation Standards Council (IVSC) Annual General Meeting (AGM) 2019 & International Business Valuation Conference in Singapore on October 7-9, 2019.

Hosted this year by the Singapore Accountancy Commission (SAC), under the Ministry for Finance for Singapore, more than 170 delegates from 40+ countries and six continents attended this year’s AGM. The AGM is the only gathering of its kind to assemble senior valuation leaders and influencers from around the world, in all fields and from all sides of the profession, including service providers, institutional investors, banks, regulators, governments and end user, according to the IVSC.

Jack Beckwith, ASA, CEA, wrote the following reflection on attending the conference.

By Jack Beckwith

The Singapore AGM conference provided an opportunity for networking among international valuation, thematic presentations and panel discussions on major valuation topics, CEOs meetings, and public and private meetings of the IVSC’s standards boards.

Jack Beckwith, ASA

Important topics regarding the future of the valuation profession were addressed at the Singapore venue attended by Valuation Professional Organizations (VPOs), Stakeholders, and Regulators from five continents. Specific panels for tangible and intangible assets discussed the need for consistency in global standards and report content that can be accomplished via education networks and strategic partnerships.

Our Working Group (AFWG) panel presented a PowerPoint on Reducing the Gap between BV Practices that covered specific questionnaire that was completed by 50 firms around the globe pertaining to the degree and thoroughness provided in the body of work such as macro and industrial analysis along with DCF and market approach disclosures. Many of those responding noted that accreditation by the appraiser was not required. Those attending the session requested a follow up webinar to expand their knowledge as to how the quality of report writing can be improved with education from more sophisticated VPOs. The Appraisal Foundation may offer to host such a webinar session via the Zoom application.

Other topics discussed during the Working Group presentation included BV Quality mark, Associated VPOs, and the impact on our valuation professions with AVMs. Currently, The AFWG is preparing a Position Paper that is focused on securing universal agreement by members of the IVSC on the main concept of a single set of International Valuation Standards and should be principle based but still implementable if a country has no standards. While the principles tend to be applied in valuation assignments throughout the globe, local customs and institutions vary significantly. Differences in valuation procedures, terminology, and other value related matters do still need to be resolved.

How this will impact ASAs willingness for adoption stems from the progress of earlier meetings this year between AIC, IVSC, and TAF to attempt to harmonize the valuation standards. The AF and AIC representatives felt that it was neither advisable nor feasible at present to fully adopt the text in the market place where USPAP is incorporated into federal law. The main concept is to further an agreement of the core valuation standards and core valuation principles where IVS would be the base foundation valuation standard from which other local and national valuation standards could emanate. A suitable analogy would be that IVS would be the trunk of the tree from which the various valuation standards could grow, all of which would have the same root and foundation via the agreed core valuation principles.

On that note, CUSPAP, IVS and USPAP have drafted an Exposure Draft which will be in consultation from Wednesday 9th October 2019 until Monday 20th January 2020 and comprises:

  • Introduction
  • Consultation Questions
  • Core Principles of Valuation Standards
  • Core Principles of Valuations
  • Appendices (comprising relevant CUSPAP, IVSC and USPAP references)
Singapore 2019 Working Group

While the overall goal for the AFWG is adoption of the IVS Standards, we can only hope that there will be compromises to align language in USPAP that will integrate with IVS Standards that our ASA Members can adhere too. Having a global quality mark with ASA as the education leader should be our objective by sharing our Principle of Valuation and Advance Studies courses by disciplines with capable Senior Instructors.

To see the PowerPoint presentation on IVSC’s “Reducing the Gap between BV Practices,” please click here.

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