RICS Draft Update to the Global Red Book

Red Book Global Update 2022 - Proposed Changes

VPS 4 Bases of value, assumptions and special assumptions 

  1. Bases of value 

The valuer must ensure that the basis of value adopted is appropriate for, and consistentwith, the purpose of the valuation. 

If one of the bases of value defined in these global standards (including IVS-defined bases) is used, then it should be applied in accordance with the relevantdefinitionand guidance, including the adoption of any assumptions or special assumptionsthat are appropriate. 

If a basis of value not defined in these global standards (including IVS-defined bases) is used, it must be clearly defined and stated in the report, which must also draw attention to the fact that it is a departure if use of the basis in the particular valuation assignment is voluntary and not mandatory. 

A valuer can only depart from the IVS as described in section 60 of the IVS Framework.