Fair valuation of real estate
Elvin Fernandez1
1.
Introduction
The International Valuation Standards Committee was founded as The International Assets Valuation Standards Committee (TIAVSC) in 1981 with the following objectives: To formulate and publish, in the public interest, valuation Standards for property valuation and to promote their worldwide acceptance; and To harmonise Standards among the world's States and to identify and make disclosures of differences in statements and/or applications of Standards as they occur.
In 1994 the Committee changed its name to the International Valuation Standards Committee as it had by then shifted considerably from its earlier remit to focus on harmonising standards solely for financial reporting purposes to a much broader spectrum to cover real estate valuations for all purposes. The scope of the Committee is continuing to widen as seen from the four broad areas that it now seeks to be involved in, namely (a) real property, (b) personal property, (c) businesses and (d) financial interests, although so far the Committee has not ventured deeply in the last of the said areas. The current set of Standards, in a publication known as IVS 2003, is in fact the sixth edition of the Standards and it can be obtained from the IVSC at a cost of US$ 25. Orders can be made through the website of the IVSC which is www.ivsc.org. The Standards are also freely available on the website of IVSC for all valuers, users of valuations, and the general public who can either peruse it or download it. IVS 2003 is in fact the final publication that concludes a special IVSC Standards Project that ran from the year 2000 to 2003. In these years, with the objective of preparing a set of comprehensive and robust Standards to facilitate cross-border transactions involving property as well as contribute to domestic and international financial stability, three publications were concluded, in tandem. Although the project itself is completed, work is still in progress on new Standards as well as revision of old Standards. The IVSC is managed by a Management Board made up of member States and this Board meets in various places around the globe, twice a year. Under the Management Board is a Standards Board that is charged with Standards setting and this Board is also made of member States but allows for outside contributions such as from regional valuation groupings, prominent valuation associations and "expert groups" who are setup on an ad hoc basis to complete specific projects. Funding is from subscriptions by member States and organisations ranging from regional valuation groupings, valuation firms and the big accounting firms. Support from the Bank of International Settlements and the International Monetary Fund will not only be welcome but would certainly constitute a worthy cause for the two bodies.

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