The IVSC, guaranteeing a professional framework for financial product valuation
The IVSC, or International Valuation Standards Council, is an international organization whose main objectives are to develop international standards for valuation and support the establishment of professional rules.
This London-based organization is involved in setting up valuation standards that can be applied internationally to all types of assets and in all circumstances.
The IVSC has earned itself remarkable visibility in the eyes of accountancy regulators and brokers, a sign of the immense need within the markets for a reference organization in this field.
The IVSC’s Professional Board is responsible for promoting good professional practices and supporting the development of an integral valuation profession.
The organization has already produced a range of Technical Information Papers (TIP), which are informative rather than prescriptive, but which constitute a collection of good practices concerning the key subjects of valuation (DCF, cost approach, intangible assets, bonuses and reductions, equity certificates, etc.). Additionally, a code of ethics has been drawn up and a critical paper on the trade itself (regarding its definition, skills, training, etc.) is currently being written.
Last May, the IVSC published an evaluation tool that will allow users to examine and assess whether a Valuation Professional Organization (VPO) complies with the principles and practices of good governance. This tool will help the authorities in question pinpoint which areas require action and assign monitoring responsibilities. The document reiterates the principles of good governance; for each subject, a fundamental principle is backed up by different objectives.
Consequently, the IVSC protects the correct functioning and independence of financial product valuation.
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