06 March 2014
The IFRS Foundation and the International Valuation Standards Council ('IVSC') today announced a joint statement of protocols for co-operation on International Financial Reporting Standards ('IFRS') and International Valuation Standards ('IVS').
Both the IVSC and the IFRS Foundation have a shared interest in the consistent measurement of fair value for financial reporting. Certain Standards issued by the IASB use fair value as a measurement basis. The IASB has also published IFRS 13 Fair Value Measurement, which sets out the principles for measuring fair value when it is required to be used in other financial reporting Standards. The IVSC has standards and guidance on fair value and other valuation measurement and facilitates collaboration and co-operation among its member organisations to help ensure consistent application.
The aim of the agreement is to ensure that both organisations are able to co-operate effectively in this important area with each organisation continuing to assume sole responsibility for their Standards.
The statement of protocols:
Michel Prada, Chairman of the IFRS Foundation Trustees, commented:
"Fair value for the purposes of financial reporting is a challenging area with wide reaching implications. We have already undertaken important work in this area, but in order to ensure that fair value is measured consistently we recognise the need to interact and exchange information with independent bodies, such as the IVSC, which share with us an interest in this area. The statement of protocols announced today represents a positive step towards achieving this enhanced level of co-operation within the financial reporting community."
Sir David Tweedie, Chairman of the International Valuation Standards Council, commented:
"Strengthening the financial system requires the elimination of any significant differences in the way that fair value is understood, and consequently reported, between different sectors and markets. Close collaboration with bodies such as the IFRS Foundation will help to continue to improve standards and increase transparency, consistency and confidence in financial reporting. We look forward to working together."
The full statement of protocols can be viewed here.
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Press enquiries:
IFRS Foundation
Chris Welsh, Communications Manager, IFRS Foundation
Telephone: +44 (0)20 7246 6945
Email: cwelsh@ifrs.org
IVSC
Ryan McSharry / Anna Younger, Spada
Telephone: +44 (0)20 7269
1430
Email: ryanmcsharry@spada.co.uk
/ annayounger@spada.co.uk
About the IFRS Foundation
The IFRS
Foundation is the oversight body of the International Accounting Standards Board
(IASB). The Foundation, through the IASB, is committed to developing, in
the public interest, a single set of high quality, global accounting standards
that require transparent and comparable information in general purpose financial
statements.
The Trustees of the IFRS Foundation promote the work of the International
Accounting Standards Board (IASB) and the rigorous application of IFRSs but are
not involved in any technical matters relating to the standards. This
responsibility rests solely with the IASB.
About the International Valuation Standards
Council
The International Valuation Standards Council
(IVSC) is an independent, not-for-profit, private sector organisation. As the
established international standard setter for valuation, the IVSC develops and
maintains standards for the reporting and disclosure of valuations, especially
those that will be relied upon by investors and other third party stakeholders
in financial statements or other published documents.
It is developing a framework of guidance on best practice for valuations of
the various classes of assets and liabilities. To promote the consistent
delivery of the standards by properly trained professionals around the globe,
the IVSC is also establishing international benchmarks for the conduct and
competency of professional valuers.
The governance structure of the IVSC
includes two independent technical Boards – the IVSC Standards Board and the
IVSC Professional Board – and a global Board of Trustees responsible for the
overall strategic direction and funding of the IVSC.
For more information please visit: www.ivsc.org.