Collaboration planned between IVSC and IFRS Foundation

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  • IVSC (International Valuation Standards Council) (lt green) Image

06 Mar 2014

The International Valuation Standards Council (IVSC) and the IFRS Foundation announced that the two organisations will deepen their co-operation in the development of International Financial Reporting Standards (IFRS) and International Valuation Standards (IVS). Main focus of the statement of protocols announced today is the co-ordination on fair value measurement.

The statement of protocols notes that the IVSC and the IFRS Foundation are independent bodies that share an interest in the consistent measurement of fair value for financial reporting and have a common interest in ensuring that standards and guidance developed by the IVSC on how to measure fair value are consistent with IFRS (especially with IFRS 13 Fair Value Measurement) and well-developed.

Therefore the following commitments are object of the statement of protocols:

  • IVSC:
    • Provide input to the IASB on proposed amendments to IFRS and developments in financial reporting that are relevant to fair value;
    • consider the IASB's comments in developing IVSs and valuation requirements for financial reporting in general;
    • provide the IASB with the opportunity to be included in IVSC consultative groups, committees and task forces on fair value measurement;
    • inform the IASB when the IVSC becomes aware of diversity in practice concerning fair value measurement.
  • IASB:
    • Provide input to the IVSC on proposed amendments to standards and developments in valuation that are relevant to financial reporting;
    • consider the IVSC's comments in developing IFRSs;
    • provide the IVSC with the opportunity to be included in the IASB's advisory and consultative groups, committees and task forces;
    • inform the IVSC when the IASB becomes aware of diversity in practice concerning fair value measurement in financial reports.

Both parties also commit to keeping abreast of developments and informing each other about emerging and divergent practice issues and research in determining fair value and to organising when necessary discussion sessions of both parties in order to highlight any relevant issues that may impact upon their work and the standards they publish.

The statement of protocols and a corresponding press release are available on the IASB website.

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