The International Valuation Standards Council (IVSC) is introducing two transformative standards on 31st January 2025: IVS 300, focusing on business and intangible assets, and IVS 400, dedicated to infrastructure assets.
These updates represent a significant advancement in global valuation practices and will be adopted by key institutions such as the Royal Institute of Chartered Surveyors (RICS) and the Australian Property Institute (API). Valuers across the globe must prepare to integrate these new standards into their practices.
Key Features of IVS 300 and 400
IVS 300 provides clearer guidelines for valuing intangible assets, such as intellectual property, goodwill and emerging technologies. It emphasises aligning valuation approaches with the economic realities of these assets, ensuring that methodologies reflect their market potential.
IVS 400 is groundbreaking in including infrastructure assets, a category critical to public and private sectors alike. The standard addresses the valuation of assets such as roads, bridges, pipelines and energy facilities, emphasising the need to consider economic, environmental and social factors in the valuation process.
What are the implications for valuers?
Including infrastructure assets in IVS 400 introduces a standardised approach for these high-value, complex assets. Integrating these standards is mandatory for valuers affiliated with RICS or API, requiring familiarity with the methodologies and reporting requirements outlined in IVS 300 and 400.
Valuers must also adapt their processes to meet the enhanced transparency and disclosure expectations. This includes providing detailed justifications for methodologies and ensuring that all valuation reports are consistent with global best practices.
AVA’s expertise in global standards
Asset Valuation Advisory (AVA) has extensive experience in valuing infrastructure assets and intangible property. Our team is well-prepared to navigate the complexities of IVS 300 and 400, offering tailored solutions for clients in industries ranging from mining and oil and gas to public sector infrastructure.
We are committed to helping clients understand and adapt to these changes, ensuring that valuations are compliant, accurate and reflect current market dynamics.
Moving forward with confidence
Implementing IVS 300 and 400 marks a significant step forward for the valuation profession, providing a consistent framework for complex asset classes. For stakeholders, these standards enhance trust and transparency in valuation outcomes.
To ensure your valuations are future-ready, contact Asset Valuation Advisory today. Let us guide you through these changes and deliver valuation solutions that meet the highest global standards.