Extractive Industries 2012
The IVSC first published Guidance Note 14, Valuation of Properties in the Extractive Industries in 2005. This was reviewed by the IVSC Standards Board as part of is Standards Improvement Project. It was considered that this topic needed a thorough review that went beyond the scope of the Improvement Project.
The Board therefore voted to withdraw GN14 in February 2010, pending the outcome of a comprehensive project to review the nature and scope of standards and guidance required to bring about convergence of valuation practice in the sector. In June 2011 it approved a new Project to undertake a comprehensive review of valuation in the sector.
A Discussion Paper was approved by the Board and published in July 2012. This examined some of the issues that have been brought to the attention of the Board and invited views from any party that either provides, commissions or relies on valuations in the mining oil and gas industries. The comment letters recieved may be viewed here.
An analysis of the comments received was considered by the Board at its meeting in November 2013. The Discussion Paper covered a wide range of topics and there was a similarly wide of views expressed by respondents, with no clear indication of where the Board should focus its resources. The Board agreed that further targeted consulation were approporiate.
In view of the lack of certainty over the scope of this project it was agreed that it would be included amoung the list of early stage projects listed in the agenda consultation commenced in 2014.
Working Group:
The working group formed to assit the Board in developing the Discussion Paper was:
| IVSC Board members | ||
| Chris Stanley – Project leader | Standards Board | New Zealand |
| Roy Farthing | Professional Board | Australia |
| External Members | ||
| Jim Eales | Ernst & Young | United Kingdom |
| Jeff Harder | Deloitte | Canada |
| Andrew Clay | Venmyn Rand pty | South Africa |
| Robert Davidoff | Dept of Interior Mineral Resources | USA |
| John Gustavson | Independent Consultant | USA |
| Hung Chu | Lonergran Edwards Associates | Australia |
| Robert Ling | KPMG | USA |
| Alexander Lopatnikov | American Appraisal Associates | Russia |
| Howard Rosen | FTI Consulting | Canada |
| Samuel Chan | Mining Group Ltd | Hong Kong |
| Alastair Mafarlane | Tomahee | South Africa |
Background
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