Why Global Valuation Standards Must Stay Independent—and Flexible

The IVSC is a not-for-profit, public interest organisation focused solely on developing and maintaining high-quality, internationally recognised valuation standards. Our standard-setting boards operate independently and transparently – guided by publicly available bylaws and a defined process that includes extensive global consultation.

If you want to be trusted by government, NGOs and regulators to work in the public interest then you need to have governance and leadership which is independent of the profession. This is why the foremost global standards setters have an independent board, to avoid conflict of interests and being seen as a trade body. Examples include the International Accounting Standards Board, the International Sustainability Standards Board (both overseen by the IFRS Foundation board), the Internation Ethics Standards Board for Accountants, the International Accounting and Assurance Standards Board (both overseen by the Public Interest Oversight Board). It is this independence that allows close engagement and recognition from IOSCO, Central Banks, Tax Authorities, Audit Regulators. This is why IVSC has an independent Board of Trustees led by a former Minister, involving leaders dedicated to public interest, to oversee IVSC. We believe that this builds trust in IVSC and this independence in turn helps build trust in the International Valuation Standards and the valuation profession.

Crucially, anyone with valuation expertise from any jurisdiction or background can apply to serve on one of our standards boards. Board members are appointed through an open and transparent recruitment process led by IVSC Trustees to  serve prescribed terms in line with IVSC’s governance procedures. This ensures a continuous rotation of diverse expertise, while safeguarding continuity and institutional knowledge.

These structures are designed to maintain the integrity of IVS. They ensure that our standards are shaped by the profession and its stakeholders – not dictated by narrow interests or external pressures.

Finally, investors are overwhelming asking for a unified approach for goodwill from policymakers, with 94% believing the IASB and FASB should follow the same approach in the subsequent measurement of goodwill.

It’s sometimes asked: why aren’t the standards more detailed? Wouldn’t a more prescriptive rulebook be easier to follow?

It’s a fair question—but valuation doesn’t work that way. Unlike a fixed formula or compliance checklist, valuation requires judgment, context, and adaptation. We’re not writing code to be run through a machine, or painting by numbers. Valuation standards need to guide for valuation professionals and stakeholders, not dictate.

A rule that seems straightforward in one jurisdiction may be impossible to apply in another due to differences in data availability, market structure, legal frameworks, or regulatory requirements. Even within harmonised regions like the EU, the way directives are implemented can vary significantly from country to country.

Take, for example, a rule prescribing how to apply a discount rate. In a stable, low-inflation economy, consistent market inputs may support a standardised approach. But in a volatile or emerging market, input data might be inconsistent, inflation unpredictable, or risk premia difficult to benchmark—making a rigid formula unreliable, even misleading.

That’s why IVS is principles-based. It sets out the expectations, requirements and considerations that apply across all valuations—irrespective of asset class or location—while enabling professional valuers to exercise judgment in line with those standards. It provides a shared framework for consistency, not uniformity.

This approach is not unique to IVSC. Other trusted global frameworks—including the International Financial Reporting Standards (IFRS), the International Accounting Standards Board (IASB), the International Auditing and Assurance Standards Board (IAASB), the OECD, and IOSCO—also adopt principles-based standards. These organisations recognise, as we do, that effective global standards must be adaptable, scalable, and capable of withstanding varied and changing market conditions.

A principles-based approach doesn’t mean professionals are left without guidance. This is where Valuation Professional Organisations (VPOs) are critical.

Bodies like RICS, the Appraisal Institute, TAQEEM, ANEVAR, ASA, CBV Institute, API, and HypZert, to name but a few, play an essential role in interpreting and operationalising IVS in their own jurisdictions. They provide localised guidance, oversight, and continuing education—ensuring that the principles of IVS are applied appropriately and consistently by their members.

These organisations also certify individual valuers and help maintain high standards of ethics and competence. That responsibility sits best with them—not with an international standard setter like IVSC.

A question we often hear is: why doesn’t IVSC certify individual valuers?

The answer goes to the heart of why IVS remains credible. If the same organisation that writes the rules also decided who gets to apply them, the risk of perceived—or actual—conflict would be significant. To put it plainly: you can’t write the rules of the game and also decide who gets to play.

By focusing exclusively on standard setting and thought leadership, IVSC preserves its neutrality. Our not-for-profit model ensures that our resources are directed towards maintaining a robust and transparent standard-setting process in the public interest—not towards commercialising credentials or managing certification programmes.

Importantly, IVSC is not funded by individual valuation professionals, nor do we charge certification or membership fees to practitioners. Our support comes from a wide range of institutional partners across the valuation ecosystem—and our funding model protects the integrity and impartiality of the standard-setting infrastructure.

In today’s financial ecosystem, a valuation in one country can have consequences in another. Capital moves freely, cross-border transactions are routine, and financial statements are scrutinised globally.

In that environment, trust matters. Investors, regulators and businesses need to know that the valuations they rely on are prepared according to transparent, credible standards developed independently of commercial or political interests.

IVS provides that trust anchor. Through global consultation, diverse board composition, and a commitment to openness, IVS enables valuers everywhere to speak a common language of professionalism and transparency—without sacrificing the flexibility needed to reflect local realities.

The valuation profession is evolving. While valuers once focused largely on tangible assets—property, plant and machinery—today they are called on to value an ever-broader range of interests:

• Infrastructure: Valuation informs the pricing, financing, and accounting of public and private infrastructure projects. Investors, governments, and lenders rely on accurate valuations to assess long-term returns and risks.
• Private Equity: Robust valuations are essential for fund reporting, investor communication, transaction planning, and regulatory compliance—particularly where assets are illiquid or not publicly traded.
• Climate-Related Assets: From carbon credits to energy transition projects, valuation plays a growing role in measuring both financial and environmental outcomes. It also helps integrate climate risk into asset values.
• Digital Technologies and Cryptocurrencies: Whether valuing intangible assets like software, data, or IP—or assessing digital currencies and blockchain-based assets—valuation provides the link between innovation and financial reporting.

IVS must support all these areas—not by offering rigid formulas, but by providing a framework that can be applied with consistency, integrity, and expert judgment.

The goal of the IVSC is clear: to provide a standard that supports credible, consistent valuations across markets, asset classes and jurisdictions. That means staying independent, engaging globally, and giving professionals the tools to do their work with skill and judgement.

In a world where trust is the ultimate currency, independence isn’t optional, it’s essential.