Last month, the Tangible Assets Board, Business Valuation Board and Standards Review Board met over three days at the IVSC AGM in Dubai. The meetings included closed and public sessions as well as joint meetings. An overview of the meeting topics and outcomes is set out below:

Tangible Assets Board (TAB):
The TAB looked at responses to technical revisions exposure draft which was open earlier in the year and which closed on 16 October. The board reviewed feedback relating to topics within their field of expertise and agreed to publish a revised and final version of the technical revisions proposals in Q1 2019. These technical revisions will be incorporated into IVS and will be published along with details of thier effective date.
The board also considered points arising from discussions earlier in the year with the Appraisal Foundation (US) and the Appraisal Institute of Canada (AIC) on further reducing the small differences between USPAP, CUSPAP and IVS. They considered a number of definitions which could be incorporated into IVS in order to support and further this process of alignment.
The board spent time considering a number of substantive topics, with a view to determining if and how they should be reflected in future updates to IVS: 1. ‘Allocation of Value’ and 2. ‘Valuation Modelling’. In both areas the board is looking at producing additional valuation standards. In the case of valuation modelling, the board heard from representatives of Hypzert on the theme of modelling long term value as required for secured ending in Germany. The board also looked at the subject of 3. 'Social Value' – the process by which broader societal benefits are reflected in the valuation of an asset. This is a topic which is increasingly featuring in the areas like public procurement and valuation, and the board will continue to explore whether in some way it can and should be incorporated into IVS.
The board reviewed feedback on the suggested amendments to Development Value (IVS410). It was concluded that further consideration was necessary to avoid this section of the Standards becoming over prescriptive in comparison to other sections.
The board revisited the topic of biological assets and cryptocurrencies – a subject which has come up in recent meetings. It was determined that, in fact, IVS as currently drafted accommodates principles on how these assets should be valued. However, it was acknowledged that the relevant standards were spread over more than one chapter and that additional guidance in the form of a ‘roadmap’ for valuers would be useful to help them navigate the relevant parts of IVS. This is something the board will look to develop over the next year.

Business Valuation Board (BVB):
The BVB continued to focus on an exposure draft for non-financial liabilities. It is hoped that this exposure draft will be ready for publication in the first half of 2019 and will be made available for public consultation via the IVSC website.
The board also considered feedback to the technical revisions consultation and will set out their final proposals in a joint updated with the Tangible Assets Board in Q1 2019 (see above).
The BVB received a presentation from a senior representative of Dubai Land Department on the subject of blockchain. Dubai is at the forefront of efforts to integrate blockchain in a number of sectors and the meeting focused on how and where standards can support, and be supported through the development of this evolving technology.

Standards Review Board (SRB)
The SRB also looked at the responses to the technical revisions consultation and worked with the chairs of the TAB and BVB to determine the way forward. They discussed the idea of setting up a Technical Enquiries service where issues can be raised with IVSC and answers provided. The idea will be further developed in the early part of 2019.
The SRB, with input from the TAB and BVB identified a number of topics which may warrant further exploration in regards to IVS. These included: arts and antiques; blockchain and cryptocurrencies; complex securities; inter-company considerations and special topics; trade related properties and trophy assets. A gap analysis will help to determine where there may be a need within IVS to reflect any or all of these topics.
The board also considered amendments to the future standards development process, with an emphasis on embedding a clear and structured programme for periodic review, consultation and revisions. The board is expected to publish proposals in 2019.

All three boards trailed new approaches to increase public participation in their meetings during the AGM, including the use of an app for live surveys. It is hoped that future meetings can benefit from this type of technology which will allow audiences to share their insights and perspectives with the boards in real time.

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