RICS Draft Update to the Global Red Book

Red Book Global Update 2022 - Proposed Changes

Summary of main changes to IVS 2020 - effective from 31st January 2022 

 

Core Principles - A list of 'core principles' for standard setting and valuation has been added to the Introduction. 

 

Glossary - The Glossary has been extended. 

 

Framework - Two clauses have been added to explain what is meant by compliance with the standards and when a departure may be made. Other changes indicate that an individual or group of individuals responsible for preparing a valuation must be appropriately qualified, competent and unbiased, and act ethically. 

 

IVS 101 Scope of Work - Valuers preparing valuations for their own employers are now referred to as 'employed valuers'. Valuers preparing valuations for a third-party client are called 'engaged valuers'. 

 

IVS 104 Bases of Value - A section on 'allocation of value' has been added. 

 

IVS 105 Valuation Approaches and Methods - wording has been reinstated to clarify that market, income and cost approaches are not exclusive and may be used in any combination. 

 

IVS 200 Businesses and Business Interests - the Introduction has been amended to better describe the scope of the standard. 

 

IVS 230 Inventory - This is a new standard and addresses the valuation of goods that will be used in future production, work in progress and goods awaiting sale. It excludes real estate and buildings under construction. 

IVS 400 Real Property Interests - the Introduction has been amended to provide additional clarification of what this standard covers, including the valuation of agricultural land and unregistered land.