Giving Valuation A Voice: Annual Report 2014-15
Giving Valuation A Voice: Annual Report 2014-15
Giving Valuation A Voice: Annual Report 2014-15
Valuation
a Voice
Annual report 2014-15
international valuation
standards council
Table of
contents
Reports
Report from the Chairman,
IVSC Board of Trustees
Report from the Chairman,
IVSC Professional Board
Report from the Chairman,
IVSC Standards Board
Report from the Chairman,
IVSC Advisory Forum
Members of the Board
of Trustees
Members of the Professional
Board
Members of the Standards
Board
Members of the Advisory
Forum Working Group
IVSC Sponsors
IVSC Member Organisations
02
04
06
08
10
11
11
12
13
14
Financial Statements
Trustees and Professional
Advisers
17
Trustees Report
18
Statement of Trustees
Responsibilities
19
Independent Auditors Report
to the IVSC Board of Trustees
20
Income Statement
21
Statement of Changes In Equity
21
Statement of Financial Position
22
Statement of Cash Flows
23
Notes to the Financial Statements 24
APEC
Thanks to the efforts of IVSC trustee, Nick Brooke,
the Asia-Pacific Business Advisory Council (ABAC),
invited the IVSC to lead a task force on the valuation
infrastructure for the Asia Pacific Economic
Cooperation Forum (APEC). During the past 12 months
the IVSC has made significant progress in responding
pro-actively to this invitation through the development
of reports to ABAC. As a consequence, a letter from
ABAC to the Ministers of Finance of the 21 APEC
economies was delivered in the lead up to the APEC
meetings held in Beijing in October (Ministers meeting)
and November 2014 (Leaders meeting). The letter
included recommendations on reinforcing the financial
architecture in the APEC economies and on the case
for the adoption of common valuation standards, the
involvement of the IVSC and the importance of a strong
valuation profession across the region. The IVSC will be
able to use this endorsement to gain in country traction
in those of the 21 economies where we do not have
strong recognition; to access regulators; and to raise
our profile via APEC workshops and other forums. This
is a very significant achievement on which the IVSC can
build for the future if we can secure adequate resources
for this initiative.
Thanks
The IVSC depends on the contributions and efforts
from many people and organisations.
Over 100 individuals, professionals at the top of their
game in various disciplines and industries, give their
time freely to sit on IVSC Boards and working groups.
A few words are really not enough to thank them for
their contribution to the global valuation profession.
At the 2014 AGM in Toronto we said goodbye to Board
members whose terms of office have come to an end.
Three members of the Standards Board who have been
on the Board since it first started work in 2008 Frank
Bollmann, who has served as vice chair, Tom Boyle and
Simon Landy. Likewise on the Professional Board, Roy
Farthing the vice chair and David Faulkner, both
members of the Board since its inception, came to the
end of their second term of office. Chris Mercer also left
the Professional Board, having come to the end of his first
term. We thank you all for your hard work and dedication.
We also said goodbye to some long standing members
of the Board of Trustees. Lee Hackett, Patrick
Gounelle and Madam Liu Ping came to the end of
their second terms of office. All were members of the
first IVSC Board of Trustees in 2008 and have played
a crucial role in the development of the IVSC since its
restructuring. Aki Watanabe also retired at the end
of his first term of office. Aki has played a key role in
increasing awareness of the IVSC in Japan and we will
all long remember the AGM in Tokyo that he and his
staff played such a large part in organising.
I would also like to thank the IVSC staff during this
challenging time, particularly April Mackenzie for her
support as Interim CEO and Marianne Tissier and Chris
Thorne for their work and contribution to IVSC over
the years. Thanks also to those organisations who have
helped through the provision of additional staff resource.
FUTURE
Our Objectives over the next 12 months are to
strengthen the IVSC boards and to increase recognition
of the valuation profession. With your help the trustees
are confident of success.
Sir David Tweedie
Chairman, IVSC Board of Trustees
GREG FORSYTHE
Chairman, IVSC Professional Board
Greg Forsythe
Chairman, IVSC Professional Board
It is in the public
interest to enhance
the quality and
consistency of
valuation practice
throughout the
world, and thereby
strengthen the
publics confidence
in the competence
of the valuation
profession globally.
Steven J Sherman
Chairman, IVSC Standards Board
Steven J Sherman
Chairman, IVSC Standards Board
John Martin
Chairman, IVSC Advisory Forum
John Martin
Chairman, IVSC Advisory Forum
We continue to
broaden our efforts
to strengthen
ties with all IVSC
members, not just
those long standing
members or those
with a tradition of
IVSC involvement.
MEMBERS OF THE
Board of Trustees
Members of the
Professional
Board 201415
Members of the
Standards Board
201415
Anthony Aaron
American Society of Appraisers (until Oct 2014)
David Bunton
The Appraisal Foundation
Menhai Chen
China Appraisal Society
KK Chui
Hong Kong Institute of Surveyors
Gilles de Courcel
Fdration Franaise des Experts en Evaluation
Ben Elder
Royal Institution of Chartered Surveyors
Eleanor Joy
Canadian Institute of Chartered Business Valuators
(until Oct 2014)
Karin Lusnic
Slovenian Institute of Auditors (from Oct 2014)
Pierre Maill
Canadian Institute of Chartered Business Valuators
(from Oct 2014)
Paul Olscamp
Appraisal Institute of Canada
Leslie Sellers
Appraisal Institute (USA)
Leandro Escobar Torres
Asociacin Profesional de Sociadades de Valoracin
(ATASA)
Daniel Van Vleet
American Society of Appraisers (from Oct 2014)
IVSC SPONSORS
IVSC
member
organisations
PROFESSIONAL valuation
organisation members
Australia
Australian Property Institute
Botswana
Real Estate Institute of Botswana
Brazil
Instituto Brasileiro Avaliacoes
Bulgaria
Chamber of Independent Appraisers
in Bulgaria
Canada
Appraisal Institute of Canada
Canadian Institute of Chartered Business
Valuators (CICBV)
China
Georgia
Mexico
India
The Practising Valuers Association
of India
Indonesia
Namibia
Namibian Institute of Valuers
The Netherlands
Raad voor Onroerende Zaken (ROZ, the
Real Estate Council)
New Zealand
Italy
Norway
Norges Takseringsforbund
Japan
Nigeria
Kazakhstan
Philippines
Poland
The Polish Federation of Valuers
Associations
Kenya
Colombia
Romania
Korea
Croatia
Russia
Latvia
Self-Regulated Inter-Regional
Appraisers Association (SIAA)
Egypt
The Egyptian Association of Real Estate
Appraisers
Finland
Macedonia
Malaysia
The Royal Institution of Surveyors,
Malaysia
Serbia
National Association of Valuers of Serbia
Slovenia
Slovenian Institute of Auditors
South Africa
Institutional members
Sri Lanka
Australia
Spain
Bulgaria
Sweden
ASPECT Association for Chartered
Surveying, Property Evaluation and
Transactions
Thailand
Thai Valuers Association
Ukraine
Ukrainian Society of Appraisers
United Kingdom
The Royal Institution of Chartered
Surveyor
provisional MEMBERS
Bangladesh
Institute of Chartered Valuers
Bangladesh
Corporate members
Hong Kong
Greater China Appraisal Ltd
Canada
International Association of Consultants,
Valuators and Analysts
Japan
Japan Valuers Co. Ltd
Malaysia
Khong & Jaafar Sdn
Eurasia
Council of Valuers Associations
of Eurasia
France
Fdration Franaise des Experts
en Evaluation
India
Ukraine
Federation of Appraisers of Business
and Intellectual Property
United Kingdom
Italy
Appraisal Foundation
E-Valuations Instituto di
Estimo e Valutazioni
Lithuania
State Budgetary Institution Property
Valuation Oversight Agency
Vietnam
Price Control Department, Ministry
of Finance
Macedonia
ACADEMIC members
Russia
Namibia
Ministry of Lands and Resettlement
Russian Federation
Switzerland
Saudi Arabia
Saudi Authority for Accredited Valuers
Turkey
Singapore
USA
South Africa
IVSC FINANCIAL
STATEMENTS
31 MARCH 2015
Financial Statements
Trustees and Professional
Advisers
17
Trustees Report
18
Statement of Trustees
Responsibilities
19
Independent Auditors Report
to the IVSC Board of Trustees
20
Income Statement
21
Statement of Changes In Equity
21
Statement of Financial Position
22
Statement of Cash Flows
23
Notes to the Financial Statements 24
Registered office
200 W. Madison Street, Suite 1500
Chicago, Illinois, 60606
United States of America
Operating office
1 King Street
London
EC2V 8AU
United Kingdom
Auditor
Crowe Clark Whitehill LLP
St. Brides House
10 Salisbury Square
London
EC4Y 8EH
United Kingdom
Bankers
HSBC Bank PLC
153 North Street
Brighton
East Sussex
BN1 1SW
United Kingdom
TRUSTEES REPORT
year ended 31 March 2015
The Trustees present their report and financial statements for the year ended 31 March 2015.
Auditor
Crowe Clark Whitehill LLP has indicated its willingness to be reappointed.
Approved and authorised for issue on 1 July 2015 by the Trustees and signed on its behalf by:
STATEMENT OF TRUSTEES
RESPONSIBILITIES
year ended 31 March 2015
The Trustees are responsible for preparing the financial statements in accordance with applicable law and
regulations.
The Bylaws of the Council require the Trustees to prepare financial statements for each financial year. Under
the Articles of Incorporation the Trustees have elected to prepare the financial statements in accordance with
International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board
(IASB) and applicable law.
International Accounting Standard 1 requires that financial statements present fairly for each financial year the
Councils financial position, financial performance and cash flows. This requires faithful representation of the effect
of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets,
liabilities, income and expenses set out in the International Accounting Standards Boards Framework for the
Preparation and Presentation of Financial Statements. In virtually all situations, a fair presentation will be achieved
by complying with all applicable IFRSs. In preparing these financial statements, the Trustees are also required to:
>>select suitable accounting policies and then apply them consistently;
>>present information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;
>>provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable
users to understand the impact of particular transactions, other events and conditions on the Councils financial
position and financial performance; and
>>prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Council will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any
time the financial position of the Council. They are also responsible for safeguarding the assets of the Council and
hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of The International Valuation Standards Council (the Council) for the
year ended 31 March 2015 which comprise the Income Statement, Statement of Changes in Equity, Statement of
Financial Position, Statement of Cash Flows and the related notes numbered 1 to 15.
The financial reporting framework that has been applied in their preparation is applicable law and International
Financial Reporting Standards issued by the International Accounting Standards Board (IFRS).
This report is made solely to the Trustees, as a body, in accordance with our agreed terms of engagement. Our
audit work has been undertaken so that we might state to the Trustees those matters we are required to state to
them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than The International Valuation Standards Council and the Trustees as a
body, for our audit work, for this report, or for the opinions we have formed.
INCOME STATEMENT
year ended 31 March 2015
2015
2014
1,702,331
1,681,049
(1,796,937)
(1,505,395)
(155,100)
(149,797)
(249,706)
25,857
Notes
Income
Tax expense
(249,706)
25,857
2015
Retained
surplus
2014
Retained
surplus
818,505
792,648
(249,706)
25,857
568,799
818,505
2015
2014
4,107
5,924
22,072
26,375
10
228,676
138,699
Prepayments
11
35,011
39,914
12
480,995
935,004
770,861
1,145,916
568,799
818,505
102,834
54,039
99,228
273,372
770,861
1,145,916
Notes
Total assets
Non current assets
Property, plant and equipment
CURRENT ASSETS
Inventories
Trade and other receivables
14
CURRENT LIABILITIES
Deferred income
Trade and other payables
TOTAL EQUITY AND LIABILITIES
13
The financial statements on pages 21 to 23 were approved by the Trustees and have been authorised for issue on
1 July 2015 and were signed on its behalf by:
2015
2014
(249,706)
25,857
Depreciation
2,356
7,776
Decrease/(increase) in inventory
4,303
(7,765)
(85,074)
(48,319)
(125,349)
107,611
(453,470)
85,160
(539)
(8,885)
(539)
(8,885)
(454,009)
76,275
935,004
858,729
480,995
935,004
2. Accounting Policies
Income recognition
Income is recognised to the extent that it is probable that the economic benefits will flow to the Council and the
income can be reliably measured. All such income is reported net of discounts and value added and other sales
taxes.
Donations and sponsorships
Donations and sponsorships are recognised in accordance with the period stated in the donor or sponsor
agreement.
Membership subscription fees
Membership subscription fees are recognised in accordance with the membership subscription period (1 April to
31 March).
Publications
Publications income is recognised when the significant risks and rewards of ownership of the goods have passed
to the buyer and the amount of income can be measured reliably.
Royalties
Royalty income arising from the use of the intangible property rights of the Council is accounted for in accordance
with the relevant contracts for the use of those rights by third parties.
Foreign currency exchange
Transactions in currencies other than the functional currency of the Council are recorded at the rates of exchange
prevailing on the dates of the transactions. At each statement of financial position date, monetary assets and
liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the statement of
financial position date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign
currencies are translated at the rates prevailing at the date when the fair value was determined.
Gains and losses arising on retranslation are included in net surplus or loss for the period, except for exchange
differences arising on non-monetary assets and liabilities where the changes in fair value are recognised directly
in equity.
3. Revenue
2015
2014
1,352,216
1,286,826
289,000
319,750
51,527
52,778
9,588
21,695
1,702,331
1,681,049
2015
2014
2,356
7,776
45,478
5,722
22,068
18,935
Rental expense
161,789
88,837
16,466
17,469
891,466
607,180
2,356
7,776
45,478
5,722
4. Operating (Deficit)Surplus
Operating profit is stated after charging/(crediting) the following:
The auditors are remunerated in Pounds Sterling () and the amounts charged for the year were 11,100
(2014 10,800).
5. Employee Expenses
2015
2014
765,804
509,979
33,813
33,474
91,849
63,727
891,466
607,180
Brought
forward
Additions
Carried
forward
21,664
8,885
30,549
30,549
539
31,088
Brought
forward
Charge for
the year
Carried
forward
16,849
7,776
24,625
24,625
2,356
26,981
Brought
forward
Carried
forward
4,815
5,924
5,924
4,107
Cost
To March 2014
To 31 March 2015
Depreciation
To March 2014
To 31 March 2015
Carrying amount
Fair value
2015
2014
2015
2014
480,995
935,004
480,995
935,004
228,676
138,699
228,676
138,699
35,011
39,914
35,011
39,914
Financial assets
Prepayments
Financial liabilities
Deferred income
Trade and other payables
(102,834)
(54,039)
(102,834)
(54,039)
(99,228)
(273,372)
(99,228)
(273,372)
Lee Hackett (Executive Vice President of Global Operations, American Appraisal Associates Inc.)
Ping Liu
Christian Mouillon (Global Vice Chair, Risk Management, Ernst & Young).
Frank Vettese
(Chief Executive & Managing Partner, Deloitte Canada; Member, Deloitte Global Executive Committee).
2015
2014
189,836
92,479
Other receivables
21,276
21,486
8,564
10,852
Accrued income
9,000
13,882
228,676
138,699
Amounts receivable from sponsors and members are non-interest bearing and are generally on 30 day terms.
The ageing of the amounts receivable from sponsors and members is as follows:
2015
2014
655
3,129
30-60 days
2,096
25,000
60-90 days
1,522
187,085
62,828
189,836
92,479
0-30 days
11. Prepayments
2015
2014
35,011
39,914
2015
2014
480,995
935,004
CURRENT
Prepayments
Cash at bank
For the purposes of the statement of cash flows the above constitute cash and cash equivalents.
2015
2014
15,076
121,080
11,126
19,968
Accrued liabilities
36,428
104,202
36,598
28,122
99,228
273,372
14. Reserves
The retained surplus reflects the accumulated surplus from the Councils activity to date. The reserve is used to
fund the current and future activities of the Council.
Telephone
+44 (0)203 178 7807
Email
contact@ivsc.org
Website
www.ivsc.org
Address
IVSC
1 King Street
London EC2V 8AU
United Kingdom