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FOR IMMEDIATE RELEASE 20 JULY 2009

IVSC EXPERT GROUP ON FINANCIAL INSTRUMENTS ANNOUNCES KEY AREAS OF FOCUS

The International Valuation Standards Council’s Expert Group on Financial Instruments has announced its initial work programme following its inaugural meeting this month. The work of the Group seeks to address the lack of standardisation and transparency in the valuation process.

The Group will provide input into the project to rewrite the International Valuation Standards to ensure that these adequately address concerns that have arisen over the valuation of financial assets and liabilities, particularly in the aftermath of the global financial crisis.

The Group has also identified the need for guidance on resolving some of the specific valuation issues that have arisen in the financial markets. A discussion paper is to be produced which will examine the suitability of different valuation methods for various situations. A project is also to commence on the identification and measurement of liquidity premiums, which is proving a controversial area of practice at present.

Finally the Group is to review the impact of recent reports by the IASB[1] and the FASB[2] to determine whether to recommend that the IVSC needs to develop further valuation guidance in this area.

Chris Thorne, Chairman of the International Valuation Standards Board said: “Valuation is at the heart of many of the issues integral to the recent credit crisis, and it is vital that a global consensus is reached on appropriate procedures and guidance if some of the problems that have been exposed are to be prevented in the future. The initial meeting of the Expert Group was extremely productive and agreed the areas where solutions are needed most.”

The next meeting of the group is in October. For further information on the Expert Group or on the IVSC, please see the website: www.ivsc.org

ENDS

For press enquiries please contact: Joanna Tudor, Spada
Joanna.Tudor@spada.co.uk
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NOTES TO EDITORS

About the IVSC:
The International Valuation Standards Council (IVSC) is charged with developing robust and transparent procedures for performing international valuations through a single set of globally recognized valuation standards, acceptable to the world’s capital markets organisations market participants and regulators, which will meet the challenges of a fast-changing global economy.

The governance structure of the IVSC, a non-profit organisation incorporated in the US, includes two independent technical Boards – the International Valuation Standards Board and the International Valuation Professional Board – and a global Board of Trustees responsible for the overall strategic direction and funding of the IVSC. The IVSC works co-operatively with national professional valuation institutes, users and preparers of valuations, governments, regulators and academic bodies, all of whom can become members of the IVSC and have an important role to play in advising the Boards on agenda decisions and priorities in the work of the IVSC.

For more information please visit: www.ivsc.org

EXPERT GROUP:

The members of the new Expert Group are:

• Mahdi Amri, Senior Manager, Deloitte, Canada
• Ana Castaneda, General Manager, InterMoney Valora Consulting S.A, Spain
• James Chang, Partner, PricewaterhouseCoopers’ Financial Risk Management Advisory practice, New York
• Tanguy Dehapiot, Head of Valuation, Market and Liquidity Risk, BNP Paribas
• James DeBono, Managing Director, Duff & Phelps
• Christopher J Dias, Principal, KPMG LLP, Financial Risk Management, New York
• Bernard Dumas, Swiss Finance Institute Professor of Finance, Université de Lausanne
• Darryll Hendricks, Managing Director and Head of Risk Methodology for UBS Investment Bank, New York
• Peter Jones, Standard and Poor’s - Global head of Valuation Scenario Services, Fixed Income Risk Management Services, UK
• Dr. Cindy Ma, Managing Director, Houlihan Lokey, New York
• Manish Saxena, Associate Vice President, American Appraisal India Pvt. Ltd
• Daniel Sommer, Partner Advisory Financial Risk Management KPMG, Germany
• Li Xiaoqiang, Division Director, Chief Accountant’s Office, China Securities Regulatory Commission
• Qingji Yang, Principal Financial Services Office, Ernst & Young, New York

Ian Blance will act as technical consultant to the group. Ian is Principal of an independent consulting practice in the UK.
A member of the staff of the International Accounting Standards Board will act as an observer to the group.

[1] IASB Expert Advisory Panel ‘Measuring and disclosing the fair value of financial instruments in markets that are no longer active’ October 2008
[2] FSP FAS 157-4 ‘Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly’ March 2009

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