Valuation standards, explained
Issued by the International Valuation Standards Council to harmonize consistency across worldwide capital markets and cross-border transactions. It provides mandatory general principles combined with explicit asset-specific execution rules.
Published by The Appraisal Foundation, USPAP sets the ethical and performance standards for appraisers in the United States, covering development and reporting of appraisals. Compliance is often required by law or regulation.
• Europe · TEGOVA
RICS Red Book
European Standards
Delivers mandatory professional standards and practical governance for chartered valuation professionals globally. It directly incorporates IVS while enforcing stringent qualification requirements and institutional oversight.
IVS 2025 at a glance
The 2025 release restructures international practice across fundamental procedural obligations and specialized class standards.
General Standards
Asset Standards
IVS 101 Scope of Work: Defines assignment parameters, client objectives, valuation dates, and engagement boundaries.
IVS 200 Businesses: Enterprise appraisals, equity stakes, joint ventures, and operating business assets.
IVS 102 Bases of Value: Defines bases such as market value, market rent, equitable value, investment value, and liquidation value, and how to choose one.
IVS 210 Intangible Assets: Intellectual property, brand assets, customer relationships, and technology valuations.
IVS 103 Valuation Approaches and Methods: Directs selection and reconciliation of market, income, and cost techniques.
IVS 220 Non-financial liabilities: Decommissioning obligations, legal provisions, warranty reserves, and contingent claims.
IVS 104 Data and Inputs: Governs information verification, comparative market evidence, and sourcing integrity.
IVS 230 Inventory: Raw materials, works in process, and manufactured stock at orderly inventory values.
IVS 105 Valuation Models: Outlines model governance, computational mechanics, risk calibration, and testing rigor.
IVS 300 Plant and Equipment: Industrial plant, complex machinery lines, depreciation profiles, and installation utility.
IVS 106 Documentation and Reporting: Directs auditable working papers, clear disclosures, and defensible conclusion delivery.
IVS 400 Real Property Interests: Land parcels, commercial towers, leaseholds, infrastructure rights, and development plots.
IVS 500 Financial Instruments: OTC derivatives, complex corporate debt, structured equity notes, and securities.
Official texts rule
Summaries are our interpretation; always consult the official text. Practitioners should reference authoritative publications from the IVSC, The Appraisal Foundation, and RICS before delivering binding assignment conclusions.